Commerzbank and UniCredit’s Virtual Meeting

By Tom Sims
FRANKFURT (Reuters) – A virtual meeting between Germany’s Commerzbank and Italy’s UniCredit will take place on Friday morning, according to an insider. This marks the beginning of discussions as UniCredit seeks a potential merger while Commerzbank prepares its defenses.

It remains unclear which executives will attend, although it’s noted that UniCredit’s CEO Andrea Orcel will not be present. Bettina Orlopp, Commerzbank’s designated CEO, indicated that the banks aim to “exchange views” following UniCredit’s stake acquisition.

Earlier this month, UniCredit disclosed a 9% investment in Commerzbank and expressed intentions to increase its holding while initiating discussions regarding a possible merger.

Commerzbank’s shares opened 0.4% higher in Frankfurt, adding to a nearly 7% increase the previous day, fuelled by a 30% rise since the announcement of UniCredit’s stake.

This merger attempt represents a significant pan-European initiative, but it encounters substantial political challenges in Germany, especially with national elections approaching. While Commerzbank’s leadership and Chancellor Olaf Scholz have opposed a takeover, some investors and business leaders support the dialogue.

Orcel stated that a merger would yield favorable results, while Orlopp emphasized the need to weigh the potential synergies against execution risks. “Sometimes it makes sense, sometimes it doesn’t, and we need to discover that together,” Orlopp concluded.