UniCredit launches hostile takeover bid for Commerzbank

The Italian banking group UniCredit SpA launched a hostile takeover bid for Commerzbank AG yesterday, worth 35 billion euros, which will run until June 16, ANSA reports, according to Agerpres.

The Italian bank is offering 0.485 UniCredit shares for each Commerzbank share, a proposal considered unattractive by investors. After the launch of the offer, the German bank's shares rose 2.5% on the Frankfurt Stock Exchange, reaching 34.84 euros, above the offer level, which values each Commerzbank share at approximately 32 euros. UniCredit shares also rose 3.5% on the Milan Stock Exchange, to 66.34 euros.

UniCredit CEO Andrea Orcel said after the launch of the offer that the Italian bank's projects for Commerzbank need time to be realized.

"It will take time, but with a lot of patience and maintaining direction, we are extremely confident that the transaction will take place," Orcel told ANSA.

The 35 billion euro offer is intended to increase UniCredit's stake in Germany's second-largest bank to more than 30%. Under German takeover regulations, a stake of more than 30% would allow UniCredit to further increase its stake through open market acquisitions next year.

Commerzbank rejected the offer and has the support of the German government in its fight to remain independent.

Orcel, a veteran investment banker who has led the bank since 2021, has yet to pull off a merger, despite several attempts. Instead, Orcel has built up stakes in rival institutions including Commerzbank, Greek group Alpha Bank and Italian insurance company Generali.

The combined entity would record a net profit of around 21 billion euros in 2030, while revenues would be around 45 billion euros in 2030 and costs would be below 14.5 billion euros.