Commerzbank Boards Rebuff UniCredit Advance, Affirming Commitment to Independent Strategy

In a clear signal of defiance against UniCredit’s takeover ambitions, Commerzbank’s supervisory and management boards have unanimously endorsed the German lender’s current strategy of independence. The decision, announced Thursday, follows a high-stakes meeting of the boards and comes amidst mounting pressure from UniCredit for a potential tie-up.

Earlier this month, UniCredit disclosed its acquisition of a 9% stake in Commerzbank, revealing plans to further increase its ownership and initiate discussions regarding a potential merger. However, this move has faced significant resistance from Commerzbank’s leadership, employees, and key political figures, including German Chancellor Olaf Scholz.

Commerzbank emphasized its commitment to serving as a “strong pillar in the German banking market and a reliable partner to the domestic economy,” highlighting its growth potential as an independent entity.

Despite widespread opposition, some prominent voices, including a major investor and certain business leaders, have expressed support for exploring a potential merger with UniCredit.

The bank’s supervisory board, comprised of several members vehemently opposed to a takeover, convened with management on Wednesday to deliberate on the matter and ultimately reaffirmed their commitment to Commerzbank’s independent course.

Bettina Orlopp, Commerzbank’s designated CEO, underscored the bank’s determination to enhance profitability “more strongly than originally planned,” signaling a focus on driving organic growth and value creation.

This decisive move by Commerzbank’s boards underscores the challenges facing UniCredit as it seeks to overcome strong resistance to its takeover ambitions. The coming weeks will be crucial as UniCredit determines its next steps and whether it will continue to pursue a deal in the face of such staunch opposition.