Customers enter a Commerzbank branch on Tuesday, August 6, 2024, in Berlin, Germany.
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Commerzbank shares jumped at the open on Wednesday after Italian bank UniCredit acquired a 4.5% stake in the Frankfurt-based bank from the German government.
As of 12:54 noon London time, shares of Commerzbank listed in Frankfurt were up 20.31%.
The stake purchase marks the first step in Berlin’s exit from the German bank. The German government said it had sold about 53.1 million shares of Commerzbank, or about 4.49% of its total 16.49% stake, to UniCredit for about 702 million euros ($775 million).
The German government said it remains Commerzbank’s largest shareholder even with a 12% reduction in its shareholding. Berlin has held a stake in Commerzbank since it injected 18.2 billion euros to rescue Commerzbank during the 2008 financial crisis. About 13.15 billion euros of that has been repaid so far, the government said last week.
“Commerzbank has once again proven that it can stand on its own feet. With the first partial sale of this investment, it will mark the completion of the successful stabilization of the investment bank and the exit of the federal government,” said Managing Director Eva Grunwald Eva Grunwald, Director of the Federal Financial Services Agency.
UniCredit said in a separate statement that it had acquired 9% of Commerzbank, confirming that half of the shares were acquired from the government.
“In order to maintain flexibility, UniCredit will file regulatory filings if necessary to obtain authorization for a potentially greater than 9.9% stake in Commerzbank,” UniCredit said. The bank’s Milan-listed shares were up as of 12:55 p.m. in London. Nearly 0.5%.
“We take note of the news announced this morning by UniCredit and its acquisition of a stake in Commerzbank,” Commerzbank said late Wednesday. “It also demonstrates the progress and position Commerzbank has achieved. Commerzbank “The management and supervisory boards will continue to act in the best interests of all our shareholders as well as key stakeholders such as employees and customers.”
Stefan Wittmann, a member of Commerzbank’s supervisory board, told Reuters that the bank’s supervisory board has scheduled a special board meeting at 5 pm local time to discuss UniCredit’s problems.
CNBC has contacted Commerzbank for comment on the meeting.
Also on Wednesday, the German bank said Commerzbank President Manfred Knof will serve out his term when his contract ends in December 2025 but will not seek renewal. Succession Process.
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The latest stake deal has reignited speculation whether UniCredit, which already has a presence in Germany through lender HypoVereinsbank, will seek to acquire Commerzbank to create a German banking giant, as some analysts It is believed that there is room for integration in the European market.
Earlier this year, market rumors suggested that Deutsche Bank, Germany’s largest bank, might seek to partner with domestic banks. The two German banks briefly pursued plans to create a major European bank in 2019 before abruptly abandoning it. .
In contrast, UniCredit has been active in mergers and acquisitions in recent months, and in July announced the acquisition of Belgian digital bank Aion and its cloud platform Voden for 370 million euros. At the same time, UniCredit Bank announced that its performance in the first half of the year hit a record high, with net income in the second quarter increasing at an annual rate of 6% to 6.3 billion euros.
CNBC has contacted UniCredit for comment on potential acquisition intentions.
