Unicredit sees Commerzbank takeover as 'a test case' for EU

The German government has no plans to block a possible takeover of Commerzbank by the Italian bank Unicredit, government spokesman Steffen Hebestreit said in Berlin on Wednesday.

Hebestreit described Commerzbank as a very important bank for the German economy, and that to keep Germany attractive as a business location, an independent strategy is important.

The bank’s future, he said, was "a matter for the capital market players," he said.

Commerzbank announced on Wednesday that chief executive Manfred Knof will step down at the end of September. He has been running the bank since 2021 and had pushed ahead with its restructuring. However, in the critical phase with the entry of Unicredit, the DAX-listed group came under pressure, with investors demanding quick clarity on the management issue.

Meanwhile the Italian bank Unicredit, which has upped its stake in Commerzbank from 9 to 21%, is keeping its options open, but has not ruled out a merger of the two institutions.

"Commerzbank is an investment. Nothing else," Unicredit chief executive Andrea Orcel said at a Bank of America conference in London on Wednesday.

However, he said a merger with the Frankfurt-based company could become "a test case for Europe," which he believes needs larger banks. "We can come together and do something greater."

Commerzbank is seen as a good strategic fit for the major Italian bank. The German banking market is fragmented and Unicredit has local experience, said Orcel, alluding to the subsidiary HypoVereinsbank (HVB), which was taken over by Unicredit in 2005.

At the same time, Orcel emphasized once again that Unicredit is not under pressure to act and could still decide to sell its stake. He added that major mergers require unity on both sides.

When asked whether the bank had held talks with the German government, Orcel replied that he had repeatedly spoken with important shareholders.

Unicredit had taken advantage of the German government's partial exit and has made a major investment in Commerzbank. The government still owns around 12% of the bank's shares.