The federal agency has given the green light, asserting that competition within the banking sector will not be threatened by UniCredit’s acquisition of up to a 29.99% stake in Commerzbank.
The competition authority’s analysis was primarily focused on the banking activities related to retail and corporate sectors.
The European Central Bank (ECB) had already approved UniCredit’s acquisition of Commerzbank back in March. However, the management of the German bank stands opposed to the deal, and the German government has also expressed displeasure.
Following the ECB’s decision, UniCredit acknowledged that while the approval highlights its financial robustness, “many factors will still determine the future steps,” indicating that more approvals are needed before the Italian bank can increase its shareholder position in the German entity.
UniCredit also mentioned that the initial timeline for deciding on a potential merger might extend “well beyond the end of 2025.”
The Italian bank expressed hope for a constructive dialogue with the new German government once it is established.
As one of Italy’s leading banks with strong operations in several European countries, UniCredit has been making significant moves in Europe’s banking sector. Its acquisition of a substantial stake in Commerzbank reignited discussions on cross-border mergers within European banking and sparked nationalistic tensions between Rome and Berlin.
The increase of UniCredit’s stake in Commerzbank to 29.9% positions the Italian bank on the verge of a potential takeover bid.
This loss of control over Commerzbank raises fears in Germany regarding potential job losses and economic challenges, particularly in terms of financing for small and medium enterprises.
UniCredit is also attempting to acquire the Italian bank BPM – Banco Popolare Milano, in a deal valued at 10 billion euros. BPM has stated that a merger with UniCredit could result in the loss of 6,000 jobs.
At the forefront of these transactions is Andrea Orcel, aged 61, a prominent figure in the banking sector often dubbed the ‘Cristiano Ronaldo of bankers’ for his expertise in mergers and acquisitions.
In 2018, Orcel was announced as the CEO of Santander, but disagreements over salary terms with Ana Botín, the powerhouse of the Spanish group, led to Santander retracting the offer. Orcel pursued legal action, resulting in the bank being ordered to pay him 43 million euros.
In 2024, UniCredit reported profits of 9.3 billion euros, while Commerzbank earned 2.62 billion euros.
