FRANKFURT: A year in to UniCredit’s campaign to persuade Commerzbank to open merger talks, chief executive officer Andrea Orcel’s hopes of overcoming German opposition seem as distant as ever.
But the Italian bank’s push for an ambitious tie-up has led to a significant overhaul at Germany’s second-largest lender.
As UniCredit built up its stake to become Commerzbank’s largest shareholder, the German bank rushed to shake up leadership, restructure and sharpen its strategic goals as it sought to remain independent. Shares have surged.
“Commerzbank is playing in a different league today than it was a few years ago,” said Andreas Thomae, a corporate governance expert at Deka, a large investor in the bank.
On Sept 11 last year, UniCredit unexpectedly disclosed it was buying Commerzbank shares. Orcel quickly made clear he wanted to talk about a merger, triggering widespread resistance from Germany.
Gabelli Global Financial Services Fund portfolio manager Ian Lapey said Commerzbank’s “self-improvement plan” had resulted in a better financial performance and higher share price.
“Orcel’s involvement has encouraged Commerzbank to accept more ambitious return targets, that’s a positive thing,” said Lapey, who ranks Commerzbank as his top stock pick for 2025. — Reuters
