Commerzbank CEO shows little interest in UniCredit's approach
By AFP
September 16, 2024 07:45 PM
The chief executive of Germany's Commerzbank said Monday he had his own vision for the lender's future but would still look at other proposals after Italy's UniCredit indicated it wanted a merger.
Italy's second-biggest bank last week unexpectedly acquired a nine-percent stake in Commerzbank, fuelling speculation that it is eyeing a tie-up.
UniCredit CEO Andrea Orcel made his intentions clear Monday, telling Germany's Handelsblatt financial daily that he saw "potential in a merger".
But Commerzbank CEO Manfred Knof insisted that Commerzbank remained "convinced of our own plan".
"But if someone else has good ideas and puts them forward, we are of course professional enough to take a look at them," Knof told reporters on the sidelines of a conference in Berlin.
Knof, who will step down as CEO at the end of 2025, said any proposal would be examined "responsibly" in the interests of stakeholders, investors, customers and employees.
But he also stressed: "I can only compare proposals if they are available. And they are not available."
'Stronger banks'
UniCredit paid around 1.4 billion euros ($1.5 billion) for the stake in Commerzbank, Germany's second-biggest bank, half of which it acquired from the German state.
Reports first surfaced several years ago that the Milan-based bank could be interested in taking over Commerzbank. UniCredit already owns German lender HypoVereinsbank.
Orcel told Handelsblatt that a merger of UniCredit and Commerzbank "could lead to considerable added value for all stakeholders".
"Europe, and Germany too, needs stronger banks. Banks are needed to finance growth and the enormous transformation that lies ahead."
A tie-up between the two would "create a much stronger competitor in the German banking market", he said, which was good for retail banking customers and businesses alike.
The German government is still Commerzbank's largest shareholder, with a remaining 12-percent stake. It recently said it aimed to sell down its stake, citing the bank's improved economic situation.
Berlin bailed out Commerzbank with billions of euros in 2009 after the global financial crisis pushed it to the brink of collapse.
Commerzbank has bounced back strongly since then, posting its best annual net profit for 15 years in 2023. It is aiming for even better results in 2024 despite expectations of lower interest rates.
German opposition politicians and the Verdi labour union have in recent days voiced strong objections to a potential takeover by UniCredit.
Asked about the next steps, Orcel said: "When the time is right, we will engage in a constructive dialogue."
If both sides "come to the conclusion that a merger is the best thing for both of us, that would be great".