Key facts
- Germany rejected UniCredit's €39 billion takeover bid for Commerzbank.
- The German government, holding a 12% stake, deemed the bid 'aggressive' and lacking an adequate premium.
- Berlin aims to preserve Commerzbank's independence and its crucial role in financing the German economy and Mittelstand.
- UniCredit's offer faced accusations of market manipulation, prompting an investigation by Frankfurt prosecutors.
- Despite the rejection, UniCredit shares saw a significant rise on the stock market.
Germany has officially rejected UniCredit SpA’s proposed €39 billion takeover of Commerzbank AG, citing an insufficient premium and concerns over the Italian bank's aggressive approach. The German government, which holds a 12% stake in Commerzbank, emphasized its support for the lender's independence and its critical role in financing medium-sized companies and the Mittelstand. The German Finance Agency stated that accepting the offer was 'economically out of the question' due to the lack of an adequate premium. The deal is politically sensitive, with Berlin keen to preserve Commerzbank's function as a key financier of the German economy and a pillar of the Frankfurt financial center. Reports suggest UniCredit had threatened to replace Commerzbank's management if it secured sufficient shareholder support, leading Commerzbank's management to involve the financial watchdog BaFin and accuse UniCredit of relying on derivative-based shares. UniCredit has rejected these criticisms and proposed streamlining Commerzbank's operations. The Italian bank stated it had surpassed its 30% acceptance threshold for the offer, having launched it with nearly 27% of Commerzbank's capital. Despite the German government's rejection, UniCredit shares rose on the stock market, while the Frankfurt public prosecutor's office confirmed preliminary investigations into suspected market manipulation.