UniCredit Aims for Commerzbank Control by Q4 Amid German Government Shift

UniCredit is aiming to exercise control of Commerzbank in the fourth quarter, the CEO of the Italian bank told CNBC in an exclusive interview.

UniCredit CEO Andrea Orcel said the bank is happy with its position in Commerzbank, with the bank now closing in on full control of the German lender, having upped its stake to 48%.

Orcel said the Italian bank is firing on all cylinders, having raised its full-year guidance after posting its best-ever second-quarter and first-half results Thursday.

Asked when a full acquisition could take place, Orcel said that certain steps still need to happen.

"With respect to the normal regulatory environment and antitrust, and what would allow us to take ownership of tendered shares and therefore exercise control, we think now potentially in Q4, maybe later, and that would mark the moment when we go in."

"That would mark the moment when we go in," the CEO said, adding that they would not wait for the AGM in May.

He said that the two banks remain "very different," adding that a number of alignments need to occur before any full merger takes place.

Shares in UniCredit were 2.3% lower in morning trade. Commerzbank shares were down 0.7%.

In a statement, Commerzbank said its position remains unchanged. "Only a constructive approach can create value for all stakeholders," the bank said.

UniCredit's swoop for Commerzbank has been one of Europe's most closely-watched takeover tussles in recent years.

The Italian bank took an initial 9% stake in 2024, before ramping it up to about 30% in March, fueling expectations of a full takeover, a prospect fiercely resisted by Commerzbank management.

The German Finance Ministry weighed in on the increasingly bitter wrangle Thursday, saying that it was "now up to the two banks to talk to each other."

The comments, which followed CNBC's interview, signal a reversal of the German government's opposition to the deal, though the ministry said it was opposed to UniCredit's "aggressive approach."

The German government holds a 12% stake in Commerzbank.

Also responding to CNBC's interview, Commerzbank's deputy chair and works council head Sascha Uebel called on each party to "act like adults."

In its second-quarter results statement, UniCredit said the Commerzbank deal has evolved from "an attractive financial investment" to a "strategic transaction of substantial industrial value creation."

The Italian bank's net profit fell 13% to 2.9 billion euros ($3.3 billion) in the second quarter, or 3.1 billion euros when excluding one-off hedging and certain other funding costs relating to the increased stake in Commerzbank.

Its full-year net profit target has been upgraded to more than 11 billion euros.