italian lender UniCredit Bank‘very aggressive, very opaque’ bid Commerzbank German Finance Minister Jörg Kukies criticized the company, stressing that hostile takeovers usually don’t work.
“In government, we need to protect the safety and stability of systemic banking,” Kukis told CNBC on Thursday at the World Economic Forum in Davos. “Hostile takeovers of systemic banks tend not to succeed.”
UniCredit now holds 9.5% of Commerzbank directly and 18.5% through derivatives, after a surprise stake increase in September and subsequent increases in stake.
Have a strong CET1 ratio (a measure of bank strength and resilience) Accounted for 16.1% As of the third quarter, the Italian bank was seeking permission from the European Central Bank, which oversees the euro zone’s largest banks, to increase its stake in Commerzbank to 29.99%.
UniCredit’s suddenly accelerated pace of acquisitions has fueled speculation that Chief Executive Andrea Orcel, a veteran Merrill Lynch dealmaker, is ultimately targeting cross-border integration.
UniCredit already operates in Germany through its HypoVereinsbank branch, but its moves have so far been met with a cold reception by Berlin’s fractured government, with outgoing Chancellor Olaf Scholz criticizing ” Unfriendly attacks and hostile takeovers are not a good thing for banks.
Divisive domestic politics in December and upcoming elections could prevent the German government from closely managing the deal.
“In this particular case, the potential acquirer acted very aggressively, very opaquely, very opaquely,” Kukis told CNBC’s Karen Tso and Steve Sedgwick. “Hostile takeovers are not a good thing for systemic banks. So it all depends on the specific circumstances of this case and this is not a general statement that Germany is not open to business with global investors.”
CNBC has reached out to UniCredit for comment.
Interview with CNBC in NovemberJust months after its surprise stake increase, Orser noted: “Let’s put it this way: If we hadn’t been invited to buy that stake, we wouldn’t be here. It all started in a way that we thought was constructive. Way to start.
The Italian banking group also launched an ambitious formal takeover bid for Italian peer Banco BPM, raising questions about its commitment to the deal. late November.
For its part, Commerzbank has argued its case is independent, board members warned massive unemployment If two banks were to merge, this would be the result of the integration.
Europe’s appetite for cross-border consolidation has waned since the controversy that followed Dutch bank ABN Amro’s acquisition and subsequent breakup in 2007 by a consortium led by the Royal Bank of Scotland, ultimately leading to the bank’s financial Closure during crisis. UniCredit’s Orser, then a senior investment banker at Merrill Lynch, advised on the deal.
However, analysts describe banking consolidation in the region, particularly in Germany, as “long overdue” Commerzbank was previously acquired by the country’s largest bank, Deutsche Bank. before initial talks suddenly collapsed in 2019.
“The suggestion that there is no consolidation and no change in the German banking sector is absolutely wrong,” Kukis said on Thursday.
UniCredit and Commerzbank will release fourth-quarter results on February 11 and February 13 respectively.
Correction: This article has been updated to reflect that UniCredit’s earnings will be released on February 11.
