Germany Pressures Italy to Thwart UniCredit’s Commerzbank Takeover Bid

Germany is intensifying its campaign to thwart UniCredit’s pursuit of Commerzbank, leveraging diplomatic channels to express its disapproval of the potential takeover. Sources reveal that German Finance Minister Christian Lindner has personally conveyed his concerns to the Italian Treasury, signaling Berlin’s determination to halt the deal.

This move aligns with German Chancellor Olaf Scholz’s recent public criticism of UniCredit’s actions, underscoring a rare moment of unity within Germany’s often-divided coalition government. Both leaders view the Italian bank’s aggressive approach with increasing apprehension.

At the heart of Germany’s resistance lies the crucial role Commerzbank plays in the nation’s economy. The bank is a major lender to the Mittelstand, the network of small and medium-sized enterprises that form the backbone of German industry.

UniCredit’s recent acquisition of a substantial stake in Commerzbank, positioning it as the bank’s largest shareholder, has sparked outrage in Germany. Labor unions, fearing potential job losses, have joined Commerzbank’s management in vehemently opposing the deal.

Adding to the political pressure, Scholz’s Social Democrat party faces pressure from its trade union base to protect jobs, particularly in the face of upcoming national elections. Simultaneously, Lindner’s pro-business FDP party, already grappling with declining poll numbers, is wary of any fallout from a deal perceived as detrimental to German interests.

Despite facing criticism for his ministry’s handling of the partial sale of the government’s stake in Commerzbank, Lindner has maintained that the government cannot discriminate against any potential buyer. However, sources reveal growing frustration within the finance ministry over UniCredit’s tactics, which are seen as a deliberate attempt to outmaneuver other potential bidders.

While some within Lindner’s FDP party favor a hands-off approach, allowing market forces to determine the outcome, concerns about Germany’s financial stability and the potential negative consequences of a hostile takeover have taken precedence.

Despite UniCredit CEO Andrea Orcel’s suggestion that he might withdraw from the deal if unwelcome, Germany appears unwilling to take any chances. With talks between the two banks set to begin, the pressure on UniCredit to abandon its pursuit of Commerzbank is mounting.