If the deal wins approval, it can make the Italian financial institution Commerzbank’s largest shareholder – to the dismay of the German authorities.
UniCredit has introduced it has elevated its stake in German lender Commerzbank, in a transfer more likely to inflame tensions with Berlin.
The Italian financial institution stated it was elevating its stake from round 9% to 21%, however that the deal was topic to regulatory approval.
It additionally introduced that it had submitted a request to the European Central Financial institution to spice up its holding to as much as 29.9%.
“UniCredit believes that there’s substantial worth that may be unlocked inside Commerzbank, both stand-alone or inside UniCredit, for the advantage of Germany and the financial institution’s wider stakeholders,” stated the Italian lender in a press release.
“Nonetheless, as was the case for UniCredit, such potential requires motion for it to be crystalized,” it added.
If the lender’s 21% stake is accredited, UniCredit will turn into Commerzbank’s largest shareholder, regardless of opposition from Berlin.
The German authorities, which presently owns 12% of Commerzbank, stated final week that it will halt a deliberate disposal of its stake.
Politicians are angered by UniCredit’s dealing with of its Commerzbank possession, accusing the lender of being secretive about its holdings.
The Italian financial institution acquired a 4.5% stake in Commerzbank earlier this month, which it purchased from the German authorities.
In accordance with the FT, the state was solely advised on the final minute that Commerzbank already had a 4.5% share – bringing its complete stake to 9%.
UniCredit had collected the preliminary portion via derivatives, a technique that didn’t require full disclosure.
Andrea Orcel, CEO of the Italian financial institution, has nonetheless acknowledged publicly that Berlin was knowledgeable of UniCredit’s present stake earlier than the second 4.5% acquisition.
Unions are notably against a UniCredit takeover attributable to issues {that a} merger might result in job cuts and hinder lending to small and medium-sized companies.
Commerzbank will maintain conferences this week between its administration and supervisory boards, with UniCredit set to dominate the agenda.