UniCredit Expands Influence with Commerzbank Stake Increase Amid Challenges

UniCredit increases its stake in Germany’s Commerzbank to 28% using derivatives, amidst facing challenges in its bid for Banco BPM. This move, controversial in Germany, strategically positions UniCredit while keeping its economic exposure hedged. The process awaits European Central Bank clearance for a potential takeover offer.

In a decisive move, UniCredit has elevated its stake in Germany's Commerzbank to 28% through new derivative contracts. This development surfaces as the Italian banking giant grapples with obstacles in its domestic acquisition bid for Banco BPM.

This latest action by UniCredit marks its emergence as Commerzbank's largest private investor, a maneuver that has ruffled feathers within the German government. The Italian bank recently sought approval from the European Central Bank to raise its ownership to just under 30%, a threshold that would demand a mandatory takeover bid.

Meanwhile, UniCredit's aggressive strategy sees it holding 9.5% of Commerzbank directly, with an additional 18.5% through derivatives. While Commerzbank refrains from commenting, it remains focused on executing its strategic initiatives, which are set to be revealed to investors in February. The Italian bank's economic exposure is strategically hedged, exuding prudence and flexibility.

(With inputs from agencies.)