Germany won't block UniCredit's Commerzbank takeover, Merz says, but criticises 'aggressive' approach

Merz signals Berlin will not block the deal

German Chancellor Friedrich Merz told reporters at the Bundespressekonferenz on Wednesday that his government is not preventing UniCredit's acquisition of Commerzbank. "We are not preventing this merger or this takeover, nor have we ever attempted to do so," Merz said. He added that the manner in which the Italian bank targeted Commerzbank "does not meet with our approval" and was "inopportune and, in some respects, aggressive." The German state still holds about 12% of Commerzbank and did not accept the offer to sell those shares. Merz acknowledged that a significant portion of shareholders made a different decision, stating that is how a market economy works.

We are not preventing this merger or this takeover, nor have we ever attempted to do so.

UniCredit's stake climbs to 47.59%

The voluntary exchange offer launched by UniCredit CEO Andrea Orcel closed in early July with shareholders tendering shares representing 17.60% of Commerzbank's capital. Combined with UniCredit's existing direct stake of 26.77% and financial instruments giving the right to physical delivery of another 3.22%, the Italian lender now controls 47.59% of the Frankfurt-based bank. An additional 13.2% in cash-settled derivatives could push UniCredit's holding comfortably past the 50% threshold, securing majority control of shareholder meetings.

Political opposition softens

The takeover bid has faced fierce resistance in Berlin since UniCredit first bought a 10% stake in September 2024. Finance Minister Lars Klingbeil previously called the approach "aggressive and hostile," and a banking union warned of "chaos." Merz's latest remarks mark a notable shift, with the chancellor now emphasising the need for dialogue. He said Europe needs large, competitive banks capable of competing with US giants, and that shareholders, not governments, should decide ownership structures.

We have to accept that a significant portion of Commerzbank shareholders made a different decision. But that's how a market economy works.

What happens next

UniCredit must secure regulatory approvals, including from the European Central Bank, which is expected by September. The Italian bank could then begin reshaping Commerzbank's governance, likely at the shareholders' meeting in spring 2027. Current Commerzbank CEO Bettina Orlopp has a contract until 2029 and has indicated she does not intend to resign. Merz stressed that Commerzbank plays a crucial role in financing German small and medium-sized enterprises and said he would be "very reluctant" to see that role disappear. Orcel, meanwhile, is expected to review the business model deeply, raising questions about the future of the bank's SME lending focus.