Italian lender UniCredit has bought a 9 per cent stake in its German rival Commerzbank and is taking regulatory steps to increase its stake further, in a move that may open the door to long-awaited banking consolidation in Europe’s largest economy.
UniCredit acquired half of the stake from the German government and bought another 4.5 per cent on the open market.
UniCredit already owns Munich-based lender HypoVereinsbank and has long been considered as a prime candidate for an acquisition of Commerzbank, as a combination of both operations has the potential to generate a German finance powerhouse.
UniCredit said on Wednesday morning that it would “engage with Commerzbank AG to explore value-creating opportunities for all stakeholders in both banks”.
It added that it was supporting the Frankfurt bank’s management and supervisory boards and acknowledged “the progress that they have made in improving the bank’s performance”.
UniCredit said it would submit regulatory filings for authorisation to potentially increase its stake in Commerzbank to more than 9.9 per cent “if and when necessary” but added that future decisions would “depend on the investment meeting UniCredit’s strict financial parameters which have been clearly and consistently communicated to the market”.
Commerzbank declined to comment.
Germany’s Finance Agency, which is in charge of the government’s debt management, borrowing and cash management, said on Wednesday morning that UniCredit would pay €700mn for the 53mn shares that the German government put on the block on Tuesday. It said that UniCredit “significantly” outbid all other bidders.
Berlin last week announced it was planning to sell down its 16.5 per cent stake in Commerzbank, which it has been holding since rescuing the lender during the financial crisis in 2009. The government, whose stake has now fallen to 12 per cent, has committed to a lock-up period of 90 days before selling any more Commerzbank shares.