Berliner Boersenzeitung - Germany seeks guarantees from Italy's UniCredit over Commerzbank takeover

Lars Klingbeil would urge UniCredit boss Andrea Orcel to protect jobs in Germany and ensure Commerzbank remains a key lender to the country's small- and medium-sized businesses, Berlin said.

Despite fierce resistance from Berlin and the German lender, UniCredit has built up a stake of nearly 50 percent in Commerzbank and is close to sealing one of Europe's biggest banking mergers in recent years.

A German finance ministry spokesman conceded the banks had moved into a "a different phase now" and were negotiating a transaction.

But he stressed Klingbeil wanted to ensure Commerzbank's interests and the country's were protected during the talks in Berlin.

"Commerzbank has over 40,000 employees and we naturally want to safeguard their interests," he told a press conference.

Commerzbank's "core business model" in financing Germany's small businesses, which form the backbone of Europe's biggest economy, should be preserved too, he said.

It was also key that Commerzbank's main operations remained in Frankfurt to ensure the city continued as "one of the most important financial centres in Europe," the spokesman said.

- Banking behemoth -

Berlin still believes it has some influence over the deal through its representation on Commerzbank's supervisory board and its roughly 12-percent stake in the bank, both legacies of a state bailout during the financial crisis.

But its leverage is now likely to be diminished given the size of UniCredit's stake.

UniCredit started building up its holding in Commerzbank in 2024 in a bid to launch a takeover.

Commerzbank slashed thousands of jobs and hiked its financial targets in an effort to convince shareholders to back its campaign to remain independent.

But these efforts failed and, with UniCredit closing in on a controlling stake, Commerzbank's CEO Bettina Orlopp called in late July for "constructive" talks with the Italian lender.

UniCredit wants to create a European banking behemoth better able to take on bigger US rivals and argues that a merger would strengthen the region's fragmented banking sector.

Despite resistance in Germany, some policymakers in Brussels and at the European Central Bank have been more supportive of a possible takeover.

(F.Schuster--BBZ)