Commerzbank, UniCredit CEOs Hold First Meeting Amid Takeover Battle

Commerzbank’s newly appointed CEO, Bettina Orlopp, held her first meeting with UniCredit executives on Friday, marking a crucial step in the Italian bank’s determined bid to acquire its German rival.

The virtual meeting, confirmed by sources familiar with the matter, comes just days after UniCredit caught Commerzbank off guard by acquiring a 9% stake and signaling its intention to pursue a full-blown takeover.

While Commerzbank has publicly maintained its commitment to an independent strategy, pressure from UniCredit is mounting. The Italian lender, led by CEO Andrea Orcel, has made no secret of its desire to merge with Commerzbank, viewing it as a strategic opportunity to create a European banking behemoth.

Orlopp, who took the helm at Commerzbank earlier this week, had previously indicated a willingness to engage in dialogue with UniCredit as a shareholder, albeit with a cautious stance. She stressed the need to carefully assess the potential synergies and execution risks associated with any deal.

The market reacted to the news of the meeting with cautious optimism. Commerzbank’s shares edged up 0.5% in Frankfurt, following a significant surge of nearly 7% on Thursday, while UniCredit’s shares slipped 0.8% after a previous day’s gain of nearly 5%.

Despite the potential for a deal, significant obstacles remain. The German government, Commerzbank’s management, and employee representatives have all expressed strong reservations about a takeover, citing concerns about potential job losses and the impact on lending to German businesses.

Adding to the complexity, Germany is heading towards national elections, making any deal involving a major domestic bank politically sensitive.

Orcel, known for his deal-making prowess, faces a considerable challenge in overcoming this resistance. While the meeting between the two CEOs marks a significant step, the path towards a potential merger remains fraught with uncertainty.