Key facts
- UniCredit and Commerzbank CEOs met briefly at a private event.
- The discussion between the CEOs did not initiate merger negotiations.
- UniCredit has acquired a 47.6% stake in Commerzbank.
- Commerzbank CEO Bettina Orlopp called for a constructive dialogue.
- Commerzbank announced a share buyback program of up to 1.2 billion euros.
- Commerzbank reported a significant increase in second-quarter net profit.
UniCredit and Commerzbank CEOs, Andrea Orcel and Bettina Orlopp, met briefly at a private event following UniCredit's successful takeover bid that resulted in the Italian bank holding a 47.6% stake in its German rival. However, the discussion did not initiate merger negotiations, focusing instead on the necessary accounting and consolidation steps related to UniCredit taking control of Commerzbank, according to a source close to UniCredit.
Commerzbank's CEO, Bettina Orlopp, has called for a constructive dialogue with UniCredit, signaling an openness to collaboration after a period of contention. Orlopp emphasized that even with a majority stake, UniCredit cannot unilaterally decide on fundamental structural measures, necessitating a shared understanding of the business model and stakeholder involvement.
UniCredit remains open to direct engagement with Commerzbank stakeholders, including the German government and employee representatives, as well as the governing bodies of Commerzbank's Polish unit, mBank. This comes as UniCredit CEO Andrea Orcel had previously outlined plans for Commerzbank to adopt UniCredit's strategy from the beginning of next year.
In a separate development, Commerzbank announced plans to launch a share buyback program of up to 1.2 billion euros ($1.39 billion), reaffirming its commitment to returning all of its earnings for the year to shareholders. The bank reported a net profit of 898 million euros for the second quarter, a significant increase from 462 million euros in the prior year period, with revenue climbing 9.3% to 3.3 billion euros, driven by higher commission income.