UniCredit Boosts Stake in Commerzbank to 26%

Milan: Italy’s second-largest bank, UniCredit, has announced an increase in its stake in Germany’s third-largest lender, Commerzbank, to 26%. Despite this significant investment, UniCredit has stated that it does not intend to seek seats on Commerzbank’s board at this time.

According to Ansa News Agency, UniCredit has increased its consolidated shareholding in Commerzbank to approximately 26%, with plans to convert the remaining ‘synthetic’ position into physical shares in the future. This conversion will bring UniCredit’s total shareholding to approximately 29%. UniCredit emphasized that it does not currently plan to pursue board representation. This move follows a previously announced timeline, consistent with the schedule communicated in July. The total impact on the CET1 ratio for the equity stake, now approximately 29%, has risen to about 145 basis points due to an increase in Commerzbank’s stock price and a restructuring of the collar derivative hedge. This restructuring aims to reduce future income statement volatility, with the return on investment confirmed at approximately 20%.

UniCredit’s increased stake further solidifies its position as Commerzbank’s largest shareholder, without taking on a management role. The bank has stated it will continue to closely monitor Commerzbank’s progress in strengthening its business sustainably and creating value for shareholders, customers, and employees. UniCredit notes that the investment has already exceeded predefined financial metrics, creating significant shareholder value, and it is optimistic about maintaining this positive trajectory.