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Germany Criticizes UniCredit's Commerzbank Takeover Attempt
2024-09-24 17:55:09
Business
Banking
Economy

Germany Criticizes UniCredit's Commerzbank Takeover Attempt

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Germany's Chancellor Olaf Scholz has sharply criticized UniCredit's acquisition of a 21% stake in Commerzbank, calling it an 'inappropriate approach in Europe.' He stated that such actions without cooperation or consultation are 'unfriendly methods.' The German government opposes the takeover, emphasizing Commerzbank's pivotal role in supporting the country's Mittelstand and its financial independence.

Finance Minister Christian Lindner underscored that Commerzbank should fend off the takeover attempt. The bank's board and union representatives fear potential job cuts and a negative impact on Mittelstand funding.

The European Central Bank, Bafin, and Bundesbank are reviewing the situation. Despite the criticism, the Italian government and ECB chief Christine Lagarde view cross-border banking consolidations positively.

This takeover battle has intensified political tensions between Rome and Berlin, highlighting the broader implications for Europe's banking sector.

Related news on that topic:

Unicredit's Ambitious Bid for Commerzbank Faces Resistance

Unicredit's pursuit of Commerzbank has ignited a heated debate across Germany. The Italian bank aims to solidify its position as the largest investor in Commerzbank, seeking to increase its stake to 29.9%. This move is framed by Unicredit as a potential catalyst for unlocking substantial value within Commerzbank, benefiting both the bank and its shareholders. However, this ambition has met significant pushback from the German establishment. Chancellor Olaf Scholz has publicly denounced Unicredit's approach as an 'unfriendly attack', reflecting a broader concern regarding foreign control of a key financial institution. Critics, including leaders from the Christian Democratic Union, have labeled Unicredit's tactics as misguided and detrimental to Germany's economic interests. The Verdi union has voiced strong opposition, pledging to defend Commerzbank's independence. This resistance is compounded by concerns about the impact of such foreign involvement on the German economy, particularly amidst rising labor costs in the banking sector compared to their Italian counterparts. As the German government retains a 12% stake in Commerzbank, the question of national interest versus foreign investment looms large. Calls from regional leaders, like Hessian Prime Minister Boris Rhein, further emphasize the urgency for protective measures to safeguard Germany's financial landscape. With Unicredit already holding a 21% stake, the outcome of this high-stakes situation remains uncertain, as both the ECB and German policymakers navigate the complexities of this potential merger.

Bettina Orlopp Takes Helm at Commerzbank

Bettina Orlopp has been appointed as the new CEO of Commerzbank, marking a significant leadership change. Previously serving as CFO and Deputy CEO, Orlopp will take over from Manfred Knof, who will step down at the end of 2025. Knof's tenure saw extensive restructuring efforts, including job cuts and branch reductions, which led to record profits in 2022. UniCredit has emerged as Commerzbank's largest shareholder, holding a 9% stake with plans to increase it to potentially 29.9%. This move has raised concerns among German political leaders about the implications for the country's banking sector and its impact on small and medium-sized enterprises. Furthermore, UniCredit's growing influence has sparked speculation about a potential hostile takeover, a scenario Orlopp and her team are preparing to counter. With a five-year contract in hand, Orlopp is set to navigate Commerzbank through these turbulent times, ensuring stability and growth for Germany's second-largest private bank.

Read 3 more recent news on this topic

The press radar on this topic:

AFP
23. September 2024 um 15:39

Chancellor: UniCredit's move on Commerzbank is an inappropriate approach in Europe

Finance
Politics
Economy
Chancellor Scholz criticizes UniCredit's move on Commerzbank as "unfriendly methods" in New York; the federal government supports the independence of Commerzbank, as it assumes an important financing function for the German economy and medium-sized businesses; UniCredit now holds 21% of Commerzbank's shares and would thus replace the federal state as the largest shareholder; the Federal Ministry of Finance has informed UniCredit that a takeover is not supported.
Deutsche Welle
24. September 2024 um 12:00

Germany decries UniCredit bid for Commerzbank 'unfriendly'

Economy
Finance
Politics
UniCredit, led by CEO Andrea Orcel, has acquired a 21% stake in Commerzbank, Germany's second-largest bank. The German government opposes a potential UniCredit takeover, citing Commerzbank's role in supporting the country's Mittelstand. UniCredit's move has reignited speculation about consolidation in Europe's fragmented banking sector, with Deutsche Bank as a potential competitor. Orcel's past includes orchestrating mergers and being involved with the Royal Bank of Scotland's bailout during the..
Frankfurter Rundschau
24. September 2024 um 11:53

"Amateurish" - Did the Federal Government Allow Itself to Be Overwhelmed in the Commerzbank Sellout?

UniCredit increases stake in Commerzbank; Federal Government surprised; Speculation about possible takeover.
sueddeutsche
24. September 2024 um 11:01

Financial Industry: Enough with the Lament! The Federal Government Made Mistakes in the Fight for Commerzbank

Economy
Finance
Politics
The takeover poker of the Italian major bank Unicredit around Commerzbank has become a political issue between Rome and Berlin within a few days. It didn't have to come to this.
Frankfurter Rundschau
24. September 2024 um 10:27

Harte Kritik an Olaf Scholz für Verkauf von Commerzbank-Anteilen: „Ein Desaster für den deutschen Bankenmarkt“

Trotz der Kritik weist Finanzminister Lindner darauf hin, dass der Bund nicht dauerhaft an einer privaten Bank beteiligt sein kann. Zudem machte die Commerzbank im letzten Jahr den höchsten Gewinn seit 15 Jahren, und der Aktienkurs hat sich in den letzten fünf Jahren verfünffacht, was den Verkaufspreis relativiert.
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