UniCredit has raised its stake in Commerzbank by 7%, bringing its total holding to 28%, edging closer to a controversial takeover. The Italian bank announced plans to increase its shareholding to 29.9%, marking a significant step in its acquisition efforts.
In a statement, UniCredit confirmed it had filed the necessary regulatory documents with the European Central Bank (ECB) for approval. The ECB has 60 days to decide on the request, with a possible 30-day extension if needed.
ECB Likely to Back Cross-Border Banking Merger
The ECB has expressed support for UniCredit’s potential full takeover of Commerzbank, aligning with its goal to enhance European banking competitiveness. ECB President Christine Lagarde said cross-border banking mergers could create larger, more agile institutions, helping European banks compete with US and Chinese rivals.
UniCredit began building its stake in Commerzbank in September, raising initial speculation about a takeover. The bank now holds a 9.5% direct stake and an additional 18.5% through derivatives.
Strategic Push for Single Market Unity
The ECB views mergers like this as part of a broader strategy to strengthen unity within the single market. By fostering larger, more efficient institutions, the ECB aims to ensure European banks can thrive globally.
UniCredit’s latest move signals its intent to solidify its position within Commerzbank ahead of regulatory approval. The acquisition would mark a significant development in the European banking landscape.
