A senior Commerzbank official has firmly rejected renewed calls from UniCredit CEO Andrea Orcel to resume merger talks, escalating the battle for ownership of the prominent German bank. Sascha Uebel, Commerzbank’s vice chairman and head of the works council, expressed strong disapproval of Orcel’s demands, indicating a preference for the German government to increase its stake in Commerzbank to protect against a potential takeover. Uebel stated, “I’ve really had enough now! Where on earth are we? In the midst of a hostile takeover bid, he is now demanding that the board speak with him again, otherwise he won’t raise his offer?”
For months, the Italian and German banks have been in a standoff. UniCredit, now Commerzbank’s largest shareholder, argues the German lender is not realising its full potential and that larger European banks would be beneficial amid geopolitical instability. Commerzbank is a major German financial institution. It is critical for the financing of Europe’s largest economy. UniCredit CEO Orcel has pursued Commerzbank since 2024, building a nearly 30% stake. German Chancellor Friedrich Merz and Commerzbank’s CEO Bettina Orlopp have described this as a hostile move. Earlier this week, UniCredit launched its cross-border takeover attempt with an offer valued at 37 billion euros ($43.56 billion).
Commerzbank, which has consistently vowed to remain independent, is set to publish an updated strategy on Friday. This new plan aims to convince investors of its independence and will include cost cuts, likely involving staff trimming – a third round of such reductions this decade. Uebel stated he would back Berlin increasing its current 12% stake in the bank to reverse what he called the government’s “botched sale” of part of its holding in 2024, which allowed UniCredit to build its initial stake. This potential government intervention, while under consideration by some politicians, reportedly faces significant hurdles.
