UniCredit launches €35 billion takeover bid for Commerzbank

The Italian bank said in a statement on Monday that the move could raise its stake in Commerzbank above the 30% threshold, „without reaching control”. According to German law, exceeding this threshold requires the launch of a public takeover bid, Bloomberg reports.

The proposed offer involves the exchange of 0.485 UniCredit shares for each Commerzbank share. This would mean around €30.8 for one Commerzbank share. Bloomberg’s calculation indicates a total value of around €34.7 billion.

UniCredit Chief Executive Andrea Orcel told a conference call with analysts that the move meant the bank “would be free to launch a bid if it wanted to.”

UniCredit lansează o ofertă de 35 de miliarde de euro pentru Commerzbank

“We do not anticipate at this point that we will take such a step. But yes, we have the freedom to do so,” he said.

German financial watchdog BaFin will make a final decision on the offer price in the coming days, UniCredit said.

A takeover of Commerzbank would allow Orcel to create a banking giant in Germany by combining Commerzbank with UniCredit’s German bank, HVB.

The German government, which owns a stake in Commerzbank, has repeatedly said it opposes a takeover by UniCredit.