Commerzbank Chairman Signals Readiness for Merger Talks with UniCredit

Commerzbank Chairman Jens Weidmann has signaled the German lender is ready to enter merger talks with UniCredit, a significant concession after months of resistance to the Italian bank's takeover attempt. The move comes as UniCredit has amassed a stake large enough to effectively control shareholder resolutions, shifting the focus at Commerzbank from opposition to negotiation.

A New Reality for Commerzbank

In a statement on Friday, Weidmann invited UniCredit to begin direct discussions over the terms of a potential merger, acknowledging the new power dynamic. The change in stance follows UniCredit's gradual accumulation of a 48% stake in the German bank.

"Even though we would have preferred things to be different, the balance of power at the next Annual General Meeting is clear," Weidmann, a former Bundesbank chief, said in the statement. The German lender's new priority is to engage directly with UniCredit to "extract concessions" and establish key parameters for its employees, shareholders, and clients.

Calls for Direct Engagement

Weidmann's call for dialogue directly addresses UniCredit CEO Andrea Orcel, who on Thursday had sought to engage with the German government and worker representatives. Worker representatives occupy half of the seats on Commerzbank’s supervisory board, a key feature of German corporate governance.

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The Commerzbank chairman stressed that negotiations must happen with the bank's management. "Everyone needs to act like adults now, because one thing is certain: These discussions are in UniCredit’s interest as well, and there will be no shortcut via Berlin," he asserted. This sentiment was reportedly echoed by Commerzbank's deputy chairman and head of the works council.

Background of the Takeover Battle

The contentious tussle between the two European banking giants began in September 2024 when UniCredit first acquired a stake, sparking opposition from Berlin. The development set off one of the most high-profile European banking battles in recent years.

The situation has escalated recently, with Orcel threatening to unseat Commerzbank's board if it does not begin adopting a UniCredit-devised strategy by January 1. Weidmann's latest comments suggest an attempt to manage the process and secure the best possible outcome through negotiation rather than continued opposition.