FRANKFURT: The European Central Bank (ECB) is poised to give Italy’s UniCredit the green light to build up its stake in German rival Commerzbank, a person familiar with the matter has told Reuters, a move that could pave the way for Europe’s biggest cross-border banking deal since the global financial crisis.
ECB employees are likely to complete their analysis of UniCredit’s purchase of 29.9% of Commerzbank by early March, setting the stage for approval by the regulator’s Supervisory Board later in the month, the source said.
The most recent briefing from the ECB’s supervisory experts, which included different scenarios to evaluate the banks’ solidity, was positive, the source added.
Spokespeople for the ECB, Commerzbank and UniCredit declined to comment.
UniCredit chief executive officer Andrea Orcel, a prolific dealmaker, shocked Germany’s corporate and political establishment by snapping up shares in Commerzbank in September.
He went on to build up the holding in the face of widespread German opposition while pressing for a full tie-up.
The ECB signing off on UniCredit owning just shy of 30% in Commerzbank would clear a significant regulatory hurdle.
Orcel has signalled the need for support from the German government for a full takeover to proceed, a move Commerzbank’s own management has called “hostile”.
A combination of UniCredit and Commerzbank would see one of Italy’s biggest banks take over Germany’s No 2 publicly traded lender. — Reuters
