The German Finance Ministry remains committed to its plan to divest its entire stake in Commerzbank AG, despite recent developments involving UniCredit SpA’s surprise acquisition of a significant share. According to sources familiar with the situation, the ministry intends to sell its remaining shares at the most favorable price, even if it means facilitating a larger stake for UniCredit.
While the ministry oversees the state’s interest in Commerzbank, any further sales require unanimous approval from a committee that includes representatives from various government bodies, including the office of Chancellor Olaf Scholz. It remains unclear whether the chancellery aligns with the finance ministry’s stance on ongoing sales.
Germany’s ruling coalition had previously agreed to fully divest from Commerzbank, which remains the finance ministry’s objective. “The Federal Government will thoroughly analyze the situation that has arisen and make decisions on how to proceed in due course,” stated a finance ministry representative.
Last week, UniCredit’s CEO Andrea Orcel unexpectedly acquired a 9% stake in Commerzbank, positioning the Italian bank as its second-largest shareholder. This move followed Germany’s first sale of shares in Commerzbank since the bank was bailed out over a decade ago. Orcel indicated he may consider a full takeover of the German bank, raising concerns within the German government.
Labor union Verdi has urged the administration to pause further share sales to prevent potential job cuts that could arise from a UniCredit acquisition. The Finance Ministry, led by Christian Lindner of the FDP party, advocates for reduced government intervention in the economy. In contrast, Chancellor Scholz’s SPD party favors a more hands-on approach.
As part of the recent transaction with UniCredit, the German government has committed to a 90-day restriction on selling additional Commerzbank shares. Currently, it holds a 12% stake, maintaining its position as the largest shareholder. With UniCredit now holding a 9% stake, there are concerns about the future independence of Commerzbank, especially as reports suggest UniCredit may seek regulatory approval to increase its holding to 30%, triggering a mandatory takeover offer.
Commerzbank has experienced a revitalization in profitability, thanks to a favorable interest rate environment, though analysts caution that achieving a target return on tangible equity of 11.5% by 2027 may be challenging as rates begin to fall.
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