Italian banking giant UniCredit should feel optimistic about its odds of acquiring Germany’s Commerzbank if it decides to do so, according to a number of experts and officials.
UniCredit recently acquired a 9% stake in Commerzbank and has asked for approval to raise its stake to 29.9% with the ultimate goal of takeover. Germany’s government, on the other hand, is openly opposed to the move and is trying to stop it.
In a recent report, Bloomberg detailed talks with several central bank officials, who said that the merger of UniCredit and Commerzbank would likely be viewed as a positive move by the European Central Bank (ECB), which would have the last say on the approval of the deal. UniCredit is considered a “well-run bank,” while the ECB would welcome the financial consolidation of the European Union and an increase in the profitability of its banks.
On the other hand, Germany’s government is currently campaigning to prevent UniCredit from acquiring a more significant stake in Commerzbank. There are hesitations about relinquishing the control of one of the country’s largest banks to a foreign company and concerns that Italy’s outstanding debt could reflect negatively on Germany in case of a financial crisis.
Germany’s supervisor, BaFin, is currently in the midst of determining whether to allow UniCredit to build its stake in Commerzbank, with the decision expected to be announced soon.