German officials are outlining key conditions for any future discussions with UniCredit over Commerzbank, reflecting a shift in Berlin’s approach from resisting the takeover to trying to influence its outcome, according to Bloomberg.
No discussions have been scheduled so far, though they are expected at some stage, the news agency said citing sources.
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Among the core demands of Berlin is to protect Commerzbank’s function in backing Germany’s Mittelstand, especially through its overseas network and trade finance business, the unnamed sources said.
The government is also likely to seek assurances that Commerzbank keeps its own stock market listing.
Besides, it would want Frankfurt to remain a significant base for the bank after any deal.
That stance has started to soften after what Chancellor Friedrich Merz described as a “considerable proportion” of shareholders tendering their stock in UniCredit’s formal offer, which closed earlier this month.
UniCredit is expected to hold just under 50% once regulatory clearance is in place.
That level could give the Italian lender enough voting strength to drive decisions at shareholder meetings.
Against that backdrop, Berlin has mostly concluded that its ability to block UniCredit from taking control is now very limited.
Its attention is therefore moving towards securing its main interests in relation to Commerzbank, the sources added.
Merz has said he does not oppose the takeover in principle, while again criticising the way UniCredit has pursued it.
He has also stressed Commerzbank’s role in funding the domestic economy.
People familiar with UniCredit’s position said the bank wants direct contact with the German government and is ready to offer concessions to move the transaction forward and respond to Berlin’s concerns.
That could include commitments to support German companies, in particular the Mittelstand, they said.
They also said job protection would probably rank below other issues in any talks. Instead, the government would be more likely to press for a promise to avoid compulsory redundancies.
UniCredit has said as many as 7,000 jobs could go if it acquires Commerzbank.
The proposal has drawn criticism from labour representatives, who occupy half of the seats on the German bank’s supervisory board.
Berlin may also seek a higher valuation than the one put forward in the earlier offer, the people said. The government has previously dismissed the bid as too low.
It is still unclear whether, or when, the Merz administration would be prepared to sell the roughly 12% holding it owns in Commerzbank.
If UniCredit were to buy Commerzbank shares outside the open market on better terms within 12 months of the bid closing, it would need to compensate investors who accepted the earlier offer.
The future location of UniCredit’s headquarters in Germany is not seen as a major issue by either side, the people said. The bank’s current German headquarters is in Munich.
Orcel has ruled out transferring UniCredit’s corporate headquarters out of Italy.
