UniCredit's curiosity in Commerzbank goes down badly in Berlin | EUROtoday

When management of a serious financial institution is at stake, politics is rarely far-off, particularly when the contender is international. The angle of Olaf Scholz's authorities to the spectacular irruption of the Italian financial institution UniCredit into the capital of the German Commerzbank is due to this fact carefully scrutinized. However, in response to the German press, the operation has taken Berlin unexpectedly.

It was the federal government that had determined to place up on the market, in the beginning of September, a part of the stake held by the State, the most important shareholder in Commerzbank since its rescue by public cash within the aftermath of the monetary disaster. But it had clearly not anticipated that the operation would encourage UniCredit to go on the offensive: along with the 4.5% offered by the State, the Italian financial institution purchased an equal stake on the markets.

With 9% of the capital, the Italian monetary establishment has thus develop into in a single day a key shareholder of the Frankfurt financial institution, quantity two on the German market. And its boss, Andrea Orcel, who spent twenty years within the mergers and acquisitions division of the American funding financial institution Merrill Lynch, doesn’t rule out any speculation for the long run. “A merger of the two banks could result in considerable added value for all stakeholders and would create a significantly stronger competitor in the German banking market,” he advised the day by day HandelsblattMonday September 16.

A step in the direction of a “real internal banking market”

A wedding would in truth give beginning to a gaggle value greater than 78 billion euros on the inventory market, a capitalization higher than that of BNP Paribas, the main banking institution within the euro zone by stability sheet dimension.

The Italian financial institution, which beneath Mr Orcel's management has develop into one of the crucial worthwhile and beneficiant European gamers with its shareholders, already purchased the German HypoVereinsBank (HVB) in 2005 and has lengthy displayed its intention to strengthen its place in Europe's main market.

For its half, Commerzbank meant to protect its independence after 100 and fifty-four years of existence and years of restructuring, by banking on its regained profitability and its specialization in financing mid-sized corporations.

To obtain his targets, Mr. Orcel may have quite a bit to do to persuade the administration of his goal and the Scholz authorities, to not point out the unions, who have been fast to precise their opposition.

In the press, hypothesis is rife about the easiest way to reply. Should Commerzbank's independence be preserved or ought to UniCredit's venture be seen as a step in the direction of consolidating the nonetheless very fragmented German banking market? The debate, which has been at a standstill for years in Germany, has been rekindled.

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