The European Central Bank (ECB) has authorised UniCredit to surpass the 30% equity participation threshold in Commerzbank, granting clearance for the institution to expand its holding without an upper ceiling.
Resolution of the remaining regulatory processes and conditions required to conclude the offer for Commerzbank is anticipated towards the end of the year.
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At that stage, UniCredit will hold approximately 50% of Commerzbank’s voting rights, positioning it to take control of the bank.
In a statement, the Italian bank said: “The decision represents an important milestone in UniCredit’s acquisition of Commerzbank, underscoring the ECB’s positive assessment of the transaction and the confidence in UniCredit’s solid fundamentals and strong standing within the European banking sector.”
This follows initial face-to-face discussions held last month between Finance Minister Lars Klingbeil and UniCredit chief executive Andrea Orcel, during which Germany outlined three conditions that must be fulfilled for UniCredit to execute a takeover of Commerzbank.
According to the finance ministry, Commerzbank must maintain its headquarters in Frankfurt and remain listed on the stock market. In addition, the lender is required to continue supplying finance to German mid-sized businesses, both domestically and overseas.
The process moved forward after UniCredit obtained just under 50% of Commerzbank shares during a formal offer this summer.
In April, Orcel put forward a plan for Commerzbank, reducing its broad network of offices worldwide.
Under UniCredit’s plan, Commerzbank’s net profit is targeted to reach €5.1bn by 2028.
The proposal argues that Commerzbank should scale back non-core international business and concentrate instead on German SMEs, domestic households and its operations in Poland.
It also calls for reducing risk in international networks, alongside spending on AI, technology and staff re-skilling.
