Commerzbank and UniCredit Engage in Strategic Talks Amid Merger Speculation

Commerzbank's CEO, Bettina Orlopp, announced upcoming talks with UniCredit as the Italian bank seeks a potential merger. Shares in both banks rose on the news, though significant political hurdles remain. Orlopp emphasized that any potential deal would need thorough evaluation for synergies and risks.

Commerzbank's forthcoming CEO, Bettina Orlopp, disclosed that preliminary discussions with UniCredit are set for Friday. This announcement comes as the Italian bank pushes for a merger, having recently acquired a 9% stake in Commerzbank. The talks aim at exchanging views now that UniCredit is a shareholder.

Both banks' shares experienced a surge, with Commerzbank hitting its highest level since 2011 and UniCredit following suit. However, political obstacles in Germany loom large, particularly ahead of national elections. Orlopp stated that the assessment of potential synergies and risks would be crucial in any merger decision.

Orlopp's remarks also serve as a retort to UniCredit's chief Andrea Orcel, who earlier deemed a merger as the best outcome. Despite rising investor interests and strategic changes, Commerzbank's management and German political figures, including Chancellor Olaf Scholz, have reservations about a takeover.

(With inputs from agencies.)