Commerzbank AG headquarters, in the financial district of Frankfurt, Germany, on Thursday, September 12, 2024.
Emanuele Cremaschi | Getty Images News | Getty Images
of Italy UniCredit said Wednesday that it had increased its potential stake in the Commercial bank to 28% using other derivatives, as the market watches whether it will make the leap with its acquisition of the German bank.
This marks an increase from the previous 21% holding.
Italy’s second-biggest bank said its ownership now includes a 9.5% direct stake and about 18.5% through derivatives.
UniCredit has applied to the European Central Bank for permission to buy a stake of up to 29.9% in the German bank, as Chief Executive Andrea Orcel simultaneously pursues a bid for Italian peer Banco BPM.
“This move reinforces UniCredit’s view that the significant value that exists in Commerzbank needs to crystallize,” UniCredit said in a press release on Wednesday. “It reflects confidence in Germany, its businesses and communities and the importance of a strong banking sector in driving Germany’s economic development.”
The lender stressed its position remains “just an investment” at this time and has no impact on its 10 billion euro ($10.49 billion) offer for Banco BPM. Analysts say Orcel could still reduce its bid and introducing a cash component to pursue domestic consolidation. In a statement accompanying the Banco BPM offer in November, UniCredit noted that such a merger would help the company “strengthen its competitive position and expand its presence in Italy”, where UniCredit ranked second after Intesa Sanpaolo.
UniCredit has not yet pushed the German takeover target or the Berlin government over a potential deal. Commerzbank said on Wednesday it had “taken note of the announcement” but declined to comment beyond pointing to its strategy, which is currently being upgraded and will be revealed on February 13.
The German government has so far opposed Orcel’s courtship of Commerzbank, but faces its own chaos following the collapse of the ruling coalition and Prime Minister Olaf Scholz. lost the vote of no confidence earlier this week cleared the way for the February election. German authorities still retain a 12% stake in Commerzbank, after selling a 4.5% stake in September in an attempt to exit its position in the lender it bailed out during the year’s financial crisis. 2008.
Analysts have previously signaled that a merger with Commerzbank in Germany, where UniCredit operates through its HypoVereinsbank division, could create synergies in capital markets, advisory, payments and operations. trade financing.
UniCredit shares were up 1.1% at 9:44 a.m. London time, with Commerzbank shares up 3.1%.
— CNBC’s Greg Kennedy contributed to this report.
