2024-09-12 09:52:29
The major Italian bank Unicredit is buying Commerzbank shares worth hundreds of millions. The federal government speaks of “significantly outbidding” other offers.
The major Italian bank Unicredit has secured a stake in Commerzbank. As part of the sale of part of the Commerzbank shares announced a week ago, the federal government sold 4.49 percent of the shares in full to the Italians. They were prepared to pay more than the shares were worth on the stock exchange on Tuesday evening.
The entire bid was allocated to Unicredit as a result of “significantly outbidding” all other offers, the responsible federal finance agency announced. The allocation price was 13.20 euros per share, 60 cents more than the shares were worth at the close of trading on Tuesday. Discounts are usual for such placements. The federal government raised 702 million euros from the sale.
Top economists welcomed the surprising entry of the major Italian bank Unicredit. “Consolidation in the European banking market makes economic sense,” said the President of the Kiel Institute for the World Economy (IfW), Moritz Schularick, to the Reuters news agency.
“The connection between the two banks, including the prospect of a takeover, could make sense,” stressed Friedrich Heinemann, financial expert at the Centre for European Economic Research (ZEW) in Mannheim. “Even by European standards, Commerzbank is a small bank that does not have the necessary size to operate successfully in the long term.”
Unicredit announced that it would work with Commerzbank to examine ways to increase value for the shareholders of both banks. If necessary, it would seek regulatory approval to increase the stake to over 9.9 percent. It was also announced that CEO Manfred Knof will leave the bank at the end of 2025.
Commerzbank closed last year with its largest profit in 15 years. The consolidated profit of Germany’s second-largest bank rose by 55 percent to 2.2 billion euros compared to 2022. Sales rose by more than ten percent to 10.5 billion euros.
The state’s stake in Commerzbank has fallen to 12 percent as a result of the sale of just over 53 million shares. However, the state remains the largest shareholder. By purchasing the share package, Unicredit is now the bank’s third-largest shareholder.