Chief government of UniCredit financial institution Andrea Orcel overtly acknowledged Monday that he favored a merger with Commerzbank, days after the Italian lender unexpectedly acquired a 9% stake in Germany’s second-biggest financial institution.
“It has been no secret for many years that we see potential in a merger,” Orcel stated in an interview with monetary each day Handelsblatt.
“For the moment, we are only a shareholder. But a merger of the two banks could lead to considerable added value for all stakeholders,” Orcel stated.
UniCredit caught markets unexpectedly final week when it disclosed it had constructed up a 9% stake in Commerzbank, half of which it acquired from the German state.
UniCredit paid round 1.4 billion euros ($1.5 billion) for the acquisition.
The announcement renewed hypothesis that the Milan-based financial institution was mulling a takeover of Commerzbank. UniCredit already owns German lender HypoVereinsbank.
“Europe, and Germany too, needs stronger banks. Banks are needed to finance growth and the enormous transformation that lies ahead,” Orcel instructed Handelsblatt.
A tie-up between UniCredit and Commerzbank would “create a much stronger competitor in the German banking market,” he stated.
“Retail banking customers could be better supported, and the German Mittelstand (small and medium-sized companies) could be strengthened with financing and more comprehensively supported internationally.”
The German authorities continues to be Commerzbank’s largest shareholder, with a remaining 12% stake. It not too long ago stated it aimed to promote its stake, citing the financial institution’s improved financial state of affairs.
Berlin had bailed out Commerzbank with billions of euros in 2009 after the worldwide monetary disaster pushed it to the brink of collapse.
Commerzbank has bounced again strongly since then, posting its greatest annual internet revenue for 15 years in 2023. It is aiming for even higher leads to 2024 regardless of expectations of decrease rates of interest.
In latest days, German opposition politicians and the Verdi labor union have voiced robust objections to a possible takeover by UniCredit.
Asked in regards to the subsequent steps, Orcel stated: “When the time is right, we will engage in a constructive dialogue.”
If either side “come to the conclusion that a merger is the best thing for both of us, that would be great.”
There was no speedy remark from Commerzbank.
Source: www.dailysabah.com