UniCredit Ups Stake in Commerzbank, Sparking Outcry from German Government and Commerzbank

Berlin: Berlin and German bank Commerzbank both expressed their dissatisfaction on Wednesday after UniCredit said it had performed operations to double its stake in the German lender to take it up to around 20%. The move makes Italy’s second-biggest bank the largest stakeholder in Commerzbank, surpassing the German government’s 12% holding.

According to Ansa News Agency, UniCredit also intends to convert another 9% it holds in derivatives. The German government is firmly opposed to UniCredit taking over Commerzbank, viewing the Italian bank’s actions as an uncoordinated attempt to increase its influence over the German lender.

“We acknowledge UniCredit’s move,” said a spokesperson for the German finance ministry. “The government’s position remains unchanged, and the government rejects UniCredit’s unfriendly and uncoordinated approach.” The statement reflects the tension between the German authorities and UniCredit over the latter’s strategic maneuvers.

The target bank itself lamented that “this move was not agreed with Commerzbank either,” highlighting the lack of communication and cooperation in the transaction. The situation has raised concerns about the future direction of Commerzbank and the implications for the German banking sector.