A customer enters a Commerzbank branch on Tuesday, August 6, 2024 in Berlin, Germany.
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Germany will not sell any more shares in Commerzbank for now and the bank's strategy is “oriented toward independence,” the financial institution said on Friday, the clearest sign yet that the government is not currently in favor of a takeover of the country's largest lender. bank.
A few days ago, Italian bank UniCredit announced that it had acquired 9% of Commerzbank's shares, becoming its second largest shareholder. Its CEO Andrea Orcel also expressed its merger ambitions.
But UniCredit's move – the deal was codenamed “Lightning” after Auxerre's dog – caught Berlin off guard and triggered opposition from unions and a defensive strategy from Commerzbank.
The German government, which still holds a 12% stake in Commerzbank after selling a 4.5% stake in Commerzbank to UniCredit, will play a key role in whether the deal can be concluded.
Over the past week, however, unions and Commerzbank management called on the government to put a hold on further share sales.
The German Finance Ministry, which is part of the German finance ministry and manages government holdings, said a meeting of a committee of government officials on Friday decided “no additional shares will be sold until further notice.”
UniCredit declined to comment. A spokesman for Commerzbank said the bank had a strategy that worked.
“Commerzbank is a stable and profitable institution. The bank's strategy aims to achieve independence. The federal government will match this move by maintaining its stake until further notice,” the agency said.
Oser said he hoped to open talks on a merger, which he said would “create a stronger competitor” in Germany. His strategy follows years of calls for Europe to make its banks more competitive against larger rivals in the United States and Asia.
He faced huge obstacles.
Cross-border transactions in European banks have been hampered by a number of factors, including years of razor-thin profits that have prevented banks from trying to work together. Politicians' preference for local “champions” also reinforces regulatory barriers to the free flow of resources across borders.
UniCredit's turnaround has overcome one of the hurdles. Unlike its rivals, the bank has the financial muscle to pursue a bold merger after reaping huge profits.
But national politics will be the hardest part, with some investors warning that cross-border deals will remain difficult.
Royal Bank of Canada (RBC) banking analyst Anke Reingen said UniCredit was unlikely to make a takeover bid anytime soon.
“We don't think a deal will ever be possible, but any move could come later than we originally expected,” she said.
Friday's announcement means the German government plans to hold Commerzbank shares beyond the 90-day lock-up period agreed upon when the shares were sold last week, according to a person familiar with the matter.