Key facts
- ECB authorized UniCredit to cross the 30% ownership threshold in Commerzbank.
- UniCredit expects to control Commerzbank with around 50% of voting rights by year-end.
- UniCredit CEO Andrea Orcel plans to install new supervisory board and management at Commerzbank.
- Commerzbank's Frankfurt headquarters and lending to German businesses are key concerns for the German government.
UniCredit, Italy's second-largest bank, announced on Thursday that the European Central Bank has authorized it to take control of Germany's Commerzbank. This approval follows a hostile takeover offer that increased UniCredit's stake in the German rival to 48%. The ECB has authorized UniCredit to cross the 30% ownership threshold and increase its stake further without upper limits. UniCredit expects to complete the takeover by the end of the year, securing around 50% of voting rights. CEO Andrea Orcel plans to implement a new strategy to boost Commerzbank's profits starting in January, with a full merger anticipated between 2029 and 2030. The Italian bank has been investing in Commerzbank for over two years. Despite opposition from Commerzbank and the German government, UniCredit secured enough shares to control ordinary shareholder resolutions. German officials are keen for Commerzbank to maintain its Frankfurt headquarters, protect jobs, and continue lending to German businesses.