The German government is not stopping the merger or takeover of Commerzbank by UniCredit, but it does not approve of the way it is being done, Chancellor Friedrich Merz said on Wednesday.
“We are not preventing this merger or this takeover, nor have we ever attempted to do so,” Merz said, speaking to reporters. “We have always only said that the manner in which Commerzbank was targeted does not meet with our approval.”
UniCredit last week said it had secured 47.6% of the shares of Commerzbank, leaving the Italian bank just short of gaining control of the German lender it has been trying to buy since 2024.
The move has met with fierce opposition in Germany, with the finance ministry calling UniCredit’s “aggressive and hostile approach” unacceptable, and a bank labour union warning of the potential for “chaos”.
But Merz’s words might signal an acknowledgement that the takeover could indeed go through. Shares in Commerzbank slipped after Merz’s announcement, though later pared some of the losses. They were down around 1.7% as of 1347 GMT.
With a 12% stake, the German government is Commerzbank’s second-largest shareholder after UniCredit and formally rejected tendering its shares to UniCredit.
According to Merz, a “significant portion” of Commerzbank shareholders accepted UniCredit’s offer but he added that, as a government, “we also feel entitled to question the business model.”
Commerzbank plays a vital role in financing the economy, particularly the small and medium-sized enterprises known as the Mittelstand. “I would be very reluctant to see that function cease in the future,” he told a press conference, but added:
“In a market economy, the owners decide on the structure they would like to have, not politicians.”
Source: Reuters.com