Italian lender seeks rapid move to take control of German Commerzbank

Major Italian bank UniCredit is preparing for a swift move to take control of Frankfurt-based Commerzbank, it said in a presentation on its half-year figures in Milan on Thursday.

UniCredit chief Andrea Orcel wants to merge the two banks to create a European lending powerhouse, but has faced opposition from Commerzbank and the German government. 

The Italian lender first acquired a stake in Commerzbank in September 2024, before launching its takeover bid in early May. 

Regulatory approvals for the takeover bid could come as early as the fourth quarter, UniCredit said. The European Central Bank must also approve completion of the transaction. 

The Italians said they would seek to assert control over Commerzbank and implement their strategic plans shortly afterwards. To achieve this, it said it would convene an extraordinary general meeting if necessary.

"Commerzbank is evolving from an attractive financial investment into a strategic transaction of substantial industrial value creation through the implementation of our proven blueprint," UniCredit said in a press release. 

UniCredit said it had secured a further roughly 17.6% of Commerzbank shares through a voluntary takeover offer by early July. Together with the 26.77% UniCredit already held, its stake would thus rise to 44.37%.

The Italians also have access to a further 3.22% of Commerzbank shares through additional financial instruments and could thus increase their holding to 47.59%. However, the European Central Bank, acting as the supervisory authority, must still approve this.

UniCredit raises profit targets

During the takeover battle for Commerzbank, UniCredit has nudged its profit targets up further. This year, net profit is to rise to "well above" €11 billion ($12.55 billion), the bank said.

In 2028, net profit is now expected to be "well above" €13 billion and in 2030 "well above" €15 billion. UniCredit said Commerzbank's results had not yet been fully factored in.

In the second quarter, UniCredit earned some €2.9 billion, around 10% less than a year earlier but more than analysts had expected on average.