Unicredit speaks on Commerzbank takeover 

 

MILAN – The Italian bank Unicredit is keeping its options open after taking a stake in the German Commerzbank, but has not ruled out a merger of the two institutions.

 

“Commerzbank is an investment. Nothing else,” Unicredit chief executive Andrea Orcel said at a Bank of America conference in London on Wednesday.

However, he said a merger with the Frankfurt-based company could become “a test case for Europe,” which he believes needs larger banks. “We can come together and do something greater.”

Commerzbank is seen as a good strategic fit for the major Italian bank. The German banking market is fragmented and Unicredit has local experience, said Orcel, alluding to the subsidiary HypoVereinsbank (HVB), which was taken over by Unicredit in 2005.

At the same time, Orcel emphasized once again that Unicredit is not under pressure to act and could decide to sell its stake. He added that major mergers require unity on both sides.

When asked whether the bank had held talks with the German government, which is opposed to Unicredit’s approach, Orcel replied that he had repeatedly spoken with important shareholders.

Unicredit had taken advantage of the German government’s partial exit and has made a major investment in Commerzbank.

It has recently used financial instruments to secure the option of increasing its stake from nine to 21%. This would make Unicredit by far the largest shareholder – ahead of the German government, which holds around 12%.