Potential UniCredit-Commerzbank Takeover Sparks Crucial Talks

German government officials and UniCredit bankers have initiated discussions following the Italian bank's purchase of a 9% stake in Commerzbank. This development could lead to one of Germany's largest banks being acquired by a foreign entity. UniCredit CEO Andrea Orcel expressed interest in further investing, though workforce opposition remains a concern.

German government officials and UniCredit bankers have engaged in discussions after the Italian lender acquired a 9% stake in Commerzbank, according to a German government source on Friday.

The development marks a significant step toward the possible acquisition of one of Germany's largest banks by a foreign institution. UniCredit has not provided any comment. Earlier this week, UniCredit CEO Andrea Orcel indicated his interest in negotiating with stakeholders to explore a potential combination. He expressed a desire to acquire more of the government-held stake in the German bank, should it be available for sale.

A German source mentioned that while the ultimate decision lies with the banks, the German government is not opposed to a merger but is mindful of Commerzbank's workforce opposition. 'We must take Commerzbank's wishes into consideration. There is obviously a strong rejection by the workforce,' said the source. (Additional reporting by Valentina Za; Writing by Tom Sims; editing by John O'Donnell)

(With inputs from agencies.)