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Germany’s finance minister has told UniCredit chief Andrea Orcel that Commerzbank should remain headquartered and listed in Frankfurt as the Italian lender moves closer to taking control of its German rival.
In the first face-to-face talks between the German government and UniCredit over the Milanese lender’s hostile push to acquire Commerzbank, Lars Klingbeil called for the interests of the Frankfurt-based group’s 40,000 employees to be safeguarded, according to a finance ministry spokesperson.
He also told Orcel, one of Europe’s most prominent dealmakers, that the bank’s role in financing Germany’s small and medium-sized businesses should be preserved, the spokesperson added.
After Monday’s meeting, Klingbeil said: “We expect Commerzbank to remain a publicly listed company headquartered in Frankfurt and to continue its strong Mittelstand business — both in Germany and internationally.”
The talks demonstrate the softening in Berlin’s approach towards a takeover in recent weeks, with the government — which holds a near-13 per cent stake in Commerzbank — moving from outright opposition towards setting conditions in the event of UniCredit securing control.
UniCredit moved closer to taking control of Commerzbank in July, securing a 47.6 per cent holding in its German rival after inviting shareholders to sell their stakes.
Although UniCredit’s holding falls short of the 50 per cent threshold for majority control, analysts have said it could exercise de facto control with its current holding.
UniCredit must still contend with demands from the German government, as well as the bank’s powerful trade unions. Berlin previously criticised UniCredit for deploying “hostile tactics” in its pursuit of Commerzbank.
While Berlin had accepted that combining the two banks would lead to some job losses, it wanted to avoid compulsory redundancies, said a person familiar with the matter.
The government also intended to retain its stake in Commerzbank for now and expected to keep two seats on its supervisory board, which, together with employee representatives, could form a majority on the board.
Orcel said he was “grateful” to the German finance minister “for the opportunity to set out our priorities and to understand his for the first time”.
He said both sides should reflect on the “constructive” discussion “so that a way forward can be found in the best interest of all stakeholders and shareholders”.
UniCredit first disclosed its stake in Commerzbank in September 2024, triggering political opposition in Germany and a protracted stand-off with the German lender’s management.
However, a person familiar with the government’s and Commerzbank’s thinking described July as a “turning point” when a greater proportion of Commerzbank investors than expected took up UniCredit’s offer, which had widely been regarded as a lowball bid.
Commerzbank declined to comment.
