UniCredit CEO says Commerzbank takeover could come in the fourth quarter
Andrea Orcel told CNBC UniCredit may move on a full Commerzbank acquisition later this year after lifting its stake to 48%.
By Maya Okafor · Markets Writer
· 3 min read
UniCredit is getting closer to a possible full takeover of Commerzbank, a deal that would reshape part of Europe’s banking market and put two major lenders under one roof. For investors, the key point is that UniCredit has already built a 48% position in the German bank, giving it what CNBC described as de facto control before any formal acquisition of the remaining shares.
UniCredit CEO Andrea Orcel told CNBC’s “Europe Early Edition” that an acquisition could happen “potentially” in the fourth quarter, while adding that it could also come later. He said that timing would be “the moment when we go in,” and said UniCredit would not wait for Commerzbank’s annual general meeting in May, according to CNBC.
A full acquisition means one company seeks to take ownership of the other, rather than just holding a large investment stake. UniCredit’s 48% position already gives the Italian bank major influence over Commerzbank, but it does not equal full ownership of the German lender.
UniCredit frames the deal as strategic
UniCredit said its Commerzbank position has shifted from “an attractive financial investment” into a “strategic transaction of substantial industrial value creation,” according to CNBC. In plain terms, that means UniCredit is presenting the stake as part of a broader business combination, not just a financial bet on Commerzbank’s share price.
Orcel told CNBC the two banks remain “very different” and said several alignments would be needed before a full merger could take place. He did not describe those alignments in the CNBC interview excerpt.
The proposed move would matter because bank mergers can change a lender’s market reach, cost base and earnings profile. They can also face close attention from regulators, shareholders and politicians, especially when they cross national borders. CNBC did not report any new regulatory decision in connection with UniCredit’s comments.
Record results and higher guidance
The comments came as UniCredit reported what Orcel called its best-ever second-quarter and first-half results, according to CNBC. The Italian lender also raised its full-year guidance after the earnings release.
UniCredit posted second-quarter net profit of 2.9 billion euros, equal to about $3.3 billion, CNBC reported. That was down 13% from the prior-year period, even as the bank described the quarter and first half as record results.
The bank lifted its full-year net profit target to more than 11 billion euros, according to CNBC. Guidance is a company’s own estimate for future performance, and investors often watch it closely because it can shape expectations for future earnings.
Orcel told CNBC that UniCredit is “firing on all cylinders,” pointing to the bank’s upgraded outlook and its latest results. The Commerzbank stake now sits at the center of UniCredit’s next major question: whether a large minority holding turns into a full takeover attempt later this year.
This story draws on original reporting from CNBC.
