Commerzbank signals openness to UniCredit deal

Commerzbank has indicated that a transaction with Italy’s UniCredit could create value, marking a change from its earlier resistance to the proposed takeover.

The German bank made the statement alongside its third-quarter results that showed net profit rising 45%.

“We are convinced that together with UniCredit, we can create value by consistently leveraging the strengths of both banks,” said Commerzbank CEO Bettina Orlopp.

“Our responsibility as Board of Managing Directors remains unchanged: in every situation, we must choose the path that creates the greatest value for our customers, our employees and our shareholders”, she added.

Commerzbank said UniCredit’s takeover offer was expected to be completed “in the coming months”.

UniCredit disclosed several weeks earlier that it had built a nearly 48% holding in Commerzbank as part of its €45bn ($50.2bn) hostile approach.

The ECB has since approved the proposed deal, removing a key regulatory barrier.

Disagreements remain over Commerzbank’s future management and governance.

UniCredit CEO Andrea Orcel does not support Orlopp continuing as Commerzbank CEO, reported Reuters.

He opposes the German government’s request to keep two seats on the lender’s supervisory board.

Berlin still owns a 13.3% stake in Commerzbank, acquired when the bank received state support during the global financial crisis.

Employees are concerned that a deal could lead to further job reductions, the news agency added.

In September, Germany set out three requirements that would have to be met if UniCredit were to take over Commerzbank, the first in-person talks on the matter between Federal Minister of Finance Lars Klingbeil and UniCredit CEO Andrea Orcel.

The finance ministry said Commerzbank should stay listed on the stock market and retain its headquarters in Frankfurt.

It is also required to keep providing finance to German mid-sized businesses both domestically and overseas.