New episode in the Unicredit-Commerzbank affair. The financial operation in Piazza Gae Aulenti in Germany has sparked a battle, not only an economic one. Berlin has barricaded itself in its protectionism, while Brussels has endorsed Unicredit’s move. And from statement to statement today the words of the CEO of the Italian group have also arrived, who has defined the operation as “an investment, not an offer” and a “trial test for Europe”, underlining the desire to maintain an open dialogue with all the parties involved.
Andrea Orcel, speaking at the 29th Financials CEO Conference of Bank of America, clarified that it is “simply” an investment, which can be maintained, increased or reduced as needed. Despite the political tensions, he reiterated that he does not want to obtain a seat on the board of directors of Commerzbank, because he considers it inappropriate for a banking competitor to have direct influence on another institution. There are three paths open now according to Orcel: “Let’s stay like this and help Commerzbank to crystallize the unexpressed value that we believe there is; let’s find a way to do something bigger, but to do it both parties must want it or if all this doesn’t work we will sell, hopefully more will return to our capital than what went out and we will distribute it to the shareholders”.
Unicredit’s acquisition of 11.5% of Commerzbank shares after those it already owns could bring the Italian banking giant to almost 30%. This has sparked debate, a battle. Berlin has reacted very harshly, with Prime Minister Olaf Scholz calling the maneuver a “hostile, unfriendly act” and accusing Unicredit of not having adequately involved the German government in a preventive dialogue. Legislative intervention is even being considered to block similar operations in the future.
On the other hand, the European Commission has instead given its green light to the operation, confirming that such maneuvers fall fully within the rules of the single market. Brussels has stressed that any restrictions or blocks by the German government must be justified by specific reasons, such as national security, making it difficult for Berlin to take direct action to stop the operation. Even more so. Commission spokeswoman Veerle Nuyts added that mergers and acquisitions in the European banking sector contribute to the resilience of banks in the face of economic shocks and foster digitalization and operational efficiency.
The deal, worth around €3.9 billion, is one of the most important acquisitions in recent years. Orcel insisted on the need to maintain a “constructive dialogue” with all parties, including the German government, while reiterating that the investment is exclusively financial and does not prelude a total merger between the two banking groups.
At stake is not only the outcome of the Unicredit-Commerzbank affair but also the future of the balance of power in the European banking system and the entire economic balance between member countries. The ECB should express itself by the end of October and Orcel spoke very clearly today: “We do not need to do something together with Commerbank, we are not obliged to do so. All scenarios are open, there is not one that predominates”.
