Commerzbank and UniCredit in Merger Talks Amid Political Hurdles

Commerzbank will commence discussions with UniCredit, which has acquired a 9% stake in the German bank, to explore a possible merger. This move comes amidst political challenges in Germany and discussions on Commerzbank's strategy of maintaining independence. The supervisory and management boards have unanimously supported the current independent strategy, as the CEO Bettina Orlopp evaluates synergies and risks in potential deals.

Commerzbank is set to engage in initial discussions with UniCredit this Friday regarding a potential merger. The Italian institution recently acquired a 9% stake in Commerzbank and aims to discuss further share acquisitions.

This ambitious venture, led by UniCredit CEO Andrea Orcel, encounters political resistance in Germany ahead of national elections. Commerzbank's newly appointed CEO, Bettina Orlopp, made her first public comments on the matter, emphasizing careful evaluation of the potential benefits and risks of the merger during a financial conference in London.

Despite interest in exploration, Commerzbank's supervisory and management boards have collectively endorsed the bank's current strategy of independence, enhancing profitability metrics and investor returns. Commerzbank's stock rose by 6% and UniCredit's by 4.5% following news of the talks.

(With inputs from agencies.)