Frankfurt [Germany], July 9: Italy's UniCredit is nearing a majority stake in its German rival Commerzbank, the lender said on Wednesday, in the latest step of its takeover bid.
The Milan-based bank said that "shares representing 17.60 percent of Commerzbank's outstanding share capital have been tendered," calling the result "well ahead of original expectations."
Along with its pre-existing 26.77 percent stake and additional financial instruments, the lender now controls 47.59 percent of Commerzbank shares, amounting to 49.65 percent rights. UniCredit chief Andrea Orcel wants to merge the two banks to create a European lending powerhouse.
He argues the deal could generate billions of euros in savings, and the elimination of around 7,000 jobs at Commerzbank, Germany's second-largest private bank.
The Italian lender first acquired a stake in Commerzbank in September 2024, before launching its takeover bid in early May. If UniCredit secures more than 50 percent of Commerzbank's shares, it would be able to exert decisive influence over the German bank's management.
Source: Qatar Tribune
