UniCredit nears control of Commerzbank

Italian lender strengthens its position despite continued opposition to its takeover pursuit.

Italian bank UniCredit is inching closer to taking full control of German peer Commerzbank after increasing its stake to around 47.6%.

The bank had already built a 26.7% position in Commerzbank before launching its tender offer in May, which netted a further 17.6% of the German lender’s shares.

The latest acceptances significantly strengthen UniCredit's position and leave CEO Andrea Orcel within reach of majority ownership, although the bank has not yet crossed the 50% threshold.

Securing majority control over Commerzbank would significantly advance UniCredit’s ambition to create a larger pan-European banking behemoth, and even before reaching 50%, UniCredit has indicated that regulators could soon regard it as exercising effective control under German rules.

The transaction, however, continues to face significant opposition.

Commerzbank's management has consistently rejected the offer as undervaluing the business, while the German government and labor representatives have voiced concerns over a foreign takeover of one of the country's largest lenders.

On Wednesday, Commerzbank said fewer than 2% of independent institutional and retail shareholders had tendered their shares, stating that most participation in the tender offer came from investment banks that were counterparties in swap contracts UniCredit had entered on Commerzbank shares.

The company argued that this low participation demonstrates the offer’s limited appeal.

The dispute also reflects broader questions about consolidation within Europe's fragmented banking sector.

Supporters argue that larger cross-border institutions could improve competitiveness and profitability, while critics warn that acquisitions could result in job losses and reduce domestic influence over strategically important financial institutions.

Investors will now be watching whether UniCredit chooses to increase its stake beyond 50% and follow through on proposed board changes and plans to boost the German lender’s profits.

How regulators interpret UniCredit’s growing influence also remains to be seen.

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