UniCredit reaches a decisive milestone in its battle for Commerzbank and exceeds 34% of the capital

Italian bank UniCredit announced on Tuesday that it had increased its direct stake in Commerzbank to 34,4%, thus reaching the target it had set for itself in its takeover bid launched in early May. This transaction, which has been met with some hostility in Germany, represents a major step forward in the attempt to merge the two institutions.

According to data published by UniCredit in accordance with German takeover regulations, investors tendered shares representing 7,6% of the German bank's capital on Tuesday. This contribution allowed the Italian institution to easily surpass the 30% threshold considered crucial in the takeover process.

The offer, which opened on May 5, is scheduled to run until June 16. Its price currently remains below the market price of Commerzbank shares, which partly explains why many institutional investors typically wait until the final days of the offer period before making their decision.

UniCredit had indicated that its initial objective was to increase its stake from 27% to a level slightly above the regulatory threshold of 30%. Once this threshold is crossed, the bank has greater flexibility to subsequently acquire additional shares on the market.

In addition to its direct stake, UniCredit also holds derivative instruments representing 16,4% of Commerzbank's share capital. Since a large portion of these products are settled in cash, the Italian bank retains some flexibility to adjust its final exposure. Including derivatives convertible into shares, its total stake now reaches 37,6%.

This operation represents a significant test for UniCredit's CEO, Andrea Orcel. The Italian banker, who has led the group since 2021, is under pressure to finalize a major acquisition after abandoning several merger projects in recent years. The outcome of this takeover bid for Commerzbank could therefore reshape the European banking landscape.