Uni Credit CEO: Acquisition of Commerzbank may be completed in the fourth quarter
UniCredit CEO Andrea Orser said on the media program "European Morning Edition" that the bank is satisfied with its current shareholding position in commercial banks. The bank has increased its shareholding ratio to 48% and is close to taking full control of the German bank. Orser said the Italian bank was doing well and raised its full-year guidance after reporting its best-ever second-quarter and first-half results on Thursday. Asked when a full takeover might be completed, Orser told reporter Caroline Ross that there were still steps to be completed. “In terms of the normal regulatory environment and antitrust scrutiny, and the conditions that would allow us to take ownership of, and therefore exercise control of, the shares that have been accepted as tender offers, we believe that now, probably in the fourth quarter, maybe later, that will mark the moment when we formally step in.” "That will mark the moment when we officially step in," the CEO said, adding that they would not wait until the annual general meeting in May. He said the two banks were still "very different", adding that a series of adjustments would need to be made before any full merger could take place. UniCredit shares fell 2.3% in early trading. Shares of commercial banks fell 0.7%. Commercial Bank said in a statement that its position remained unchanged. "Only a constructive approach can create value for all stakeholders," the bank said. UniCredit's takeover of Commerzbank is one of the most closely watched takeover battles in Europe in recent years. The Italian bank first bought a 9% stake in 2024 and then increased its stake to about 30% in March, sparking expectations of a full takeover, but the prospect was strongly resisted by commercial bank management. Germany's Finance Ministry weighed in on the increasingly heated dispute on Thursday, saying "it is now up to the two banks to negotiate with each other." The comments, which followed media interviews, mark a reversal of the German government's approach to the deal, although the ministry said it opposed UniCredit's "aggressive approach". The German government holds a 12% stake in Commerzbank. Commercial Bank Vice Chairman and Union President Sasha Uber, who also responded to the media interview, called on all parties to "act like adults." UniCredit said in its second-quarter results report that the deal with the commercial bank had evolved from an "attractive financial investment" to a "strategic transaction with significant industrial value creation." The Italian bank's second-quarter net profit fell 13% to 2.9 billion euros ($3.3 billion), or 3.1 billion euros excluding one-time hedging and certain other financing costs related to increasing its stake in commercial banks. Its full-year net profit target has been raised to more than 11 billion euros.