UniCredit CEO: Commerzbank Share Price Too High for Acquisition
Key Points
- UniCredit has quietly acquired a 28% stake in Commerzbank since September using derivatives, with approval from the European Central Bank to go as high as 29.9%.
- CEO Andrea Orcel told F.M.I.E Sources that the current valuation of Commerzbank does not offer sufficient value to UniCredit shareholders.
- The Italian bank is navigating resistance in both Germany and Italy over separate acquisition ambitions for Commerzbank and Banco BPM.
F.M.I.E Sources reports that UniCredit CEO Andrea Orcel on Wednesday stated that the share price of Commerzbank — a long-rumored acquisition target — is currently too inflated to justify a takeover offer.
Since September, UniCredit has built a 28% stake in the German lender via derivatives and holds authorization from the European Central Bank to raise that position to 29.9%.
However, when asked whether the bank would pursue a takeover at a premium to current market prices, Orcel was direct: “At this level, we would not see value for our investors,” he told F.M.I.E Sources. “We are happy with the gains from our current position, but any further move would not be in their best interest.”
Commerzbank’s shares have surged 76% year-to-date, driven by optimism around Germany’s relaxed fiscal stance and higher defense spending. Despite the gains, Orcel believes the stock’s rally has surpassed the company’s fundamentals.
“There is a lot of activity aimed at keeping the share price artificially high,” he noted. “But we’re patient.”
Orcel emphasized that UniCredit is currently “far away” from any merger bid and would first seek a constructive resolution with the German government, which has shown clear opposition to the move.
German Chancellor Friedrich Merz recently addressed Commerzbank staff directly, criticizing UniCredit’s approach as “unfriendly” and reiterating Berlin’s support for an “independent and strong Commerzbank.”
According to F.M.I.E Sources, UniCredit’s bid was initially encouraged, but the Italian bank has faced growing resistance not only in Germany but also at home. UniCredit is simultaneously pursuing a takeover of Italy’s Banco BPM, a move that has been temporarily suspended by Italian regulators following concerns tied to the government’s “golden powers” over strategic national interests.
On the matter of Russia, Orcel pointed to ongoing ambiguity from European regulators regarding expectations around UniCredit’s operations in the country. “We haven’t issued new loans in Russia since 2021,” he said, adding that without clear guidance, the bank could be exposed to as much as €20 billion in potential penalties — a risk he described as unacceptable.
“If we can reach clarity with the government, we may move forward [with the Banco BPM deal]. If not, we will walk away,” Orcel stated firmly.
Orcel concluded by describing UniCredit as a “private solution” to a long-elusive European banking union, though acknowledged the path forward remains complex and politically charged.