The European Central Bank has approved UniCredit’s request to exceed the 30% shareholding threshold in Commerzbank and to further increase its stake without an upper limit, the Italian bank announced on Thursday. UniCredit called the decision “an important milestone” in its takeover of Commerzbank, adding that it underscores the ECB’s positive assessment of the transaction and confidence in UniCredit’s position within the European banking sector.
The remaining supervisory procedures and conditions for completing the offer are expected to be finalized by the end of the year, at which point UniCredit will hold approximately 50% of Commerzbank’s voting rights and gain control of the German bank. UniCredit secured nearly half of Commerzbank’s shares this summer through a share exchange offer, with the ECB’s approval marking the final regulatory hurdle for converting those shares into direct ownership.
The ECB, which oversees the largest banks in the euro area, has repeatedly signaled support for cross-border bank mergers to strengthen the EU single market. UniCredit may now freely purchase additional Commerzbank shares on the open market or consider a new offer, though the latter would likely carry a premium. UniCredit has pursued Commerzbank for nearly two years, steadily increasing its stake despite resistance from the German bank and government.
