UniCredit Sets Sights on Germany: Acquires 4.5% Stake in Commerzbank from German Government as a Step Forward

UniCredit and Commerzbank Shares Experience Surge Today

Today, shares of UniCredit and Commerzbank are on the rise.
The Italian bank based in Gae Aulenti announced the acquisition of a 4.5% stake in Commerzbank, a Frankfurt-based financial institution, directly from the German government.

This acquisition marks the first step in Berlin’s gradual exit from its ownership stake in the German bank.
To date, Germany has sold approximately 53.1 million shares of Commerzbank, corresponding to a 4.49% reduction of its overall 16.49% share.
This transaction, valued at around €702 million, raises UniCredit’s holding in Commerzbank to 9%.
Interestingly, this could just be the beginning of their ambition to strengthen their position in Germany.

Immediate Impact on Commerzbank Shares

Following the announcement, Commerzbank’s stock saw an impressive increase of 17.5% at the start of the trading session.
Despite this sale, the German government retains approximately 12% of Commerzbank, maintaining its status as the majority shareholder since it injected €18.2 billion to rescue the bank during the 2008 financial crisis, having repaid about €13.15 billion so far.

Eva Grunwald, CEO of the federal financial agency, stated, “Commerzbank has once again proven capable of standing on its own.
This initial partial sale will mark the successful stabilization of the investment bank and thus the federal government’s exit.”

Future Leadership of Commerzbank

UniCredit confirms their total stake in Commerzbank is 9%, with half of that acquisition coming from the German government.
In related news, Commerzbank CEO Manfred Knof has decided to fulfill his term but will not seek renewal when it expires in December 2025, prompting the bank to embark on a search for his successor.

Speculations Around UniCredit’s Strategic Moves

This latest move pricks the ears of speculators as UniCredit, already a player in the German banking sector through its stake in HypoVereinsbank, might continue its climb up Commerzbank to seize the reins of a substantial German banking powerhouse.

In early 2024, whispers surfaced regarding Deutsche Bank’s interest in striking a deal with Commerzbank.
However, both German giants could not reach an agreement that would have led to the creation of a European banking giant, as seen in 2019.
Deutsche Bank’s CEO Christian Sewing dismissed the merger idea back in January.

Meanwhile, UniCredit remains focused on mergers and acquisitions, with their recent purchase of Belgian digital bank Aion and its cloud platform Vodeno for €370 million being the latest addition to a portfolio of strategic growth.
As the leading Italian bank, UniCredit boasts significant firepower in M&A activities, having reported a record performance in the first half of the year, alongside a 6% increase in net revenues, reaching €6.3 billion.