UniCredit CEO declares Commerzbank takeover 'unstoppable'

UniCredit CEO Andrea Orcel declared the Italian bank's takeover of Germany's Commerzbank 'unstoppable,' citing clear business logic, as the standoff between the two lenders enters a decisive phase.

'But if it doesn't work out, someone else will come along. That's the reality of the market. Consolidation is inevitable,' Orcel told Frankfurter Allgemeine Zeitung in an interview published Wednesday.

UniCredit currently owns a 27% direct stake in Commerzbank, making it the largest shareholder in the Frankfurt-based lender. Including derivatives, the total stake stands at 32.64%, according to a filing last week. A direct stake above 30% would trigger a mandatory takeover offer under German law.

In mid-March, UniCredit announced a voluntary share exchange offer for all outstanding shares. The bid faces broad opposition: Commerzbank management, employees, and the German government — which owns 12% of Commerzbank shares — all oppose a potential hostile takeover.

UniCredit shareholders are due to vote on a required capital increase for the bid at an extraordinary general meeting on May 4. Commerzbank plans to present updated financial targets alongside its first-quarter results on May 8.

Commerzbank has said discussions with UniCredit failed to demonstrate benefits beyond what it could achieve independently, while warning of significant execution risks tied to a merger. It also criticized UniCredit for acting without prior coordination, saying this had undermined trust.