Global: German Finance Minister Raises Concerns Over UniCredit’s Potential Takeover of Commerzbank

Germany’s finance minister, Christian Lindner, has expressed his concerns to Italy’s Treasury regarding a potential takeover of Commerzbank by Italian lender UniCredit, according to sources familiar with the matter. This move comes as the German government aims to prevent a hostile acquisition of one of its key financial institutions.

Lindner’s concerns were reportedly shared with Italy’s economy and finance minister, Giancarlo Giorgetti, in alignment with German Chancellor Olaf Scholz’s recent public criticism of UniCredit’s intentions to become the largest shareholder in Commerzbank.

Berlin’s Resistance to the Takeover

The German government is pushing back against UniCredit’s attempt to seize control of around 20% of Commerzbank shares, a move that could lead to a full takeover bid. Commerzbank, which plays a central role in financing Germany’s medium-sized businesses, is seen as crucial to the country’s economic stability. Berlin’s concerns are not just economic but political, as the move has sparked opposition from trade unions, bank management, and the broader public.

Despite ongoing divisions within Germany’s coalition government, UniCredit’s actions have brought an unusual moment of unity, with both Lindner and Scholz aligning in their criticism of the Italian bank’s approach. While Lindner, a member of the pro-market Free Democratic Party (FDP), has been more reserved in his public statements, his ministry is reportedly frustrated by what it views as aggressive tactics from UniCredit.

A Hostile Takeover and Political Fallout

Chancellor Scholz described UniCredit’s move as “an unfriendly attack,” a sentiment echoed by trade unions who fear job losses as a result of the takeover. The pressure on Scholz to adopt a strong stance is mounting, particularly from unions with close ties to his Social Democratic Party (SPD).

Lindner, who has faced political challenges following his party’s recent electoral losses, is also sensitive to the potential fallout from the deal. Opposition politicians have criticized his handling of the sale of part of the government’s stake in Commerzbank, which they claim opened the door for UniCredit’s surprise move. Lindner, however, has rejected these accusations, insisting that the government cannot unfairly discriminate against any buyer.

Germany’s Financial Stability at Stake

While some senior figures within Lindner’s FDP believe that investors should be left to evaluate the deal on its own merits, officials within the finance ministry see UniCredit’s actions as a potential threat to Germany’s financial stability. The aggressive approach has raised concerns about a hostile takeover destabilizing a key player in the nation’s banking sector.

In response, UniCredit CEO Andrea Orcel has suggested that he may walk away from the deal if it is not welcomed by stakeholders, adding further uncertainty to the situation.

The German finance ministry and Italy’s Treasury have both declined to comment on the ongoing discussions.