UniCredit Faces German Resistance Over Commerzbank Plan
UniCredit proposed cost cuts to boost Commerzbank profits while holding a 30% stake. German Chancellor Friedrich Merz rejected the plan and the takeover bid.
UniCredit has drawn renewed criticism from the government of Germany after presenting a strategic roadmap for Commerzbank that suggests improvements can be made regardless of a merger. The Italian lender has built a nearly 30% stake in its rival since September 2024, despite persistent opposition from German officials.
In March, the bank from Italy announced a 35 billion-euro ($41 billion) all-share bid for Germany's second-largest bank. Before formalizing the offer, UniCredit leadership held an analyst call to discuss its vision for the target, which it described as a sector laggard that risks becoming unfit for modern industry challenges.
