German government announcements or regulatory filings

UniCredit Acquires 9% Stake in Commerzbank, Sparking Merger Talks and Labor Union Opposition

Sep 11, 2024, 01:17 PM

UniCredit has acquired a 9% stake in Commerzbank, making it the German lender’s second-biggest investor. This move has brought Andrea Orcel full circle and caught the German government off guard, placing Chancellor Olaf Scholz in a difficult position. UniCredit CEO Andrea Orcel has approached Commerzbank’s management to explore merger talks, with Commerzbank holding a board meeting to discuss the proposal. German labor union Ver.di has urged the government to stop selling shares in Commerzbank and block any potential acquisition by UniCredit. In response, Commerzbank has tapped Goldman Sachs to advise on its options and is preparing a defense strategy. This development is seen as part of a broader push for European banking consolidation, with the labor union vowing to fight the move tooth and nail.