UniCredit's Push for Commerzbank Stake Under Scrutiny by April 14
Investigators probe into Unicredit's potential acquisition of Commerzbank
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The German Federal Cartel Office is currently on a mission to assess UniCredit's incursion into Commerzbank, with a tentative deadline set for mid-April. A spokesperson for the authority has confirmed the looming April 14 cutoff. Andrea Orcel, UniCredit's CEO, had previously voiced concerns over potential delays and extended investigation times from the competition authorities.
Back in February, the Italian banking titan forwarded their plans for acquiring a substantial Commerzbank stake to the cartel office for scrutiny. These documents must be thoroughly reviewed by the authorities within a month. If they deem it necessary for a more intricate examination, they will kick-start a formal review process, ultimately prolonging their review timeline. In the event of a main review procedure, the Bundeskartellamt must deliver a decision within five months of submission.
According to the latest reports, UniCredit presently owns just over 28% of Commerzbank, a considerable chunk of which derives from derivative shares. These derivative shares, however, still necessitate official sanctions, including approval from the German Federal Cartel Office, prior to being converted into physical stocks.
Should UniCredit secure a foothold in Commerzbank, the decision timeline could stretch far into 2026, thanks to Commerzbank's resistance and the German government's opposition, coupled with the need for additional regulatory clearances. Despite securing approval from the European Central Bank to up their stake, UniCredit continues to encounter substantial obstacles in executing their plans for Commerzbank.
Sources: ntv.de, rts
[1] Initial reviews typically take a month, but could stretch up to four months if deemed necessary for a more detailed examination of potential market competition impacts.
[2] UniCredit has roughly a 28% stake in Commerzbank, with 18.5% held via derivatives. These derivative shares still require transformations into physical shares, necessitating further approvals, including from the German Federal Cartel Office.
[3] Strong opposition from Commerzbank and the German government, as well as additional regulatory approvals, threaten to push the final decision on UniCredit's plans, potentially including a takeover, beyond the end of 2025.
- The German Federal Cartel Office is investigating UniCredit's acquisition of a stake in Commerzbank, with a potential deadline for their initial review set at the end of April.
- Andrea Orcel, UniCredit's CEO, has expressed concerns over potential delays and extended investigation times from the competition authorities, including the German Federal Cartel Office.
- To secure a foothold in Commerzbank, UniCredit needs the approval of multiple regulatory bodies, including the German Federal Cartel Office, and could face obstacles extending beyond the end of 2025 due to resistance from Commerzbank and the German government.
