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🇩🇪 Germany /Economy & Trade

Commerzbank takeover: Hesse premier reportedly sets demands for UniCredit

From Die Zeit · () German

Translated from German and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources Ongoing story
  • Hesse Premier Boris Rhein reportedly urged UniCredit CEO Andrea Orcel to keep Commerzbank’s legal headquarters, executive board and key banking functions in Frankfurt.
  • UniCredit has secured access to nearly 50% of Commerzbank shares, while the German government still holds just over 12% and could play an important role in any takeover.
  • Concerns in Frankfurt focus on possible job cuts, the reduction of Commerzbank’s international network and a potential merger with UniCredit’s German subsidiary, HypoVereinsbank.

Hesse Premier Boris Rhein has told UniCredit CEO Andrea Orcel that a takeover of Commerzbank must leave the bank firmly rooted in Frankfurt. The demands came during a meeting between the two men as UniCredit secured access to almost half of Commerzbank’s shares.

According to information obtained by dpa, the Hesse government wants Commerzbank to retain its legal headquarters and executive board in Frankfurt. The bank should also remain a German-law stock corporation. Important banking functions must stay in the city, Rhein reportedly argued, and Commerzbank’s corporate banking business must not be transferred to UniCredit’s German subsidiary, HypoVereinsbank.

Rhein also stressed Commerzbank’s importance to Frankfurt’s financial center and to local jobs. A UniCredit spokesman confirmed the meeting and described the discussions as constructive. “We have made it very clear in recent weeks that we are seeking direct dialogue with the government. We therefore greatly value the direct exchange with Premier Rhein,” he said.

The German government is also involved. Berlin still owns just over 12% of Commerzbank after helping rescue the bank with billions of euros in taxpayer funds during the financial crisis, making it the second-largest shareholder. Finance Minister Lars Klingbeil has invited Orcel to Berlin for talks on Sept. 14.

UniCredit sees potential savings worth billions from a takeover, including thousands of job cuts, and wants to reduce Commerzbank’s overseas network. Those plans have fueled fears in Frankfurt of a major restructuring and a future merger with HVB, which could put Munich in contention as the main headquarters. Commerzbank recently reported that second-quarter profit nearly doubled year on year, rising from €462 million to €898 million. In early August, it also announced plans to spend up to €1.2 billion buying back its own shares.

We have made it very clear in recent weeks that we are seeking direct dialogue with the government. We therefore greatly value the direct exchange with Premier Rhein.

· UniCredit spokesmanThe spokesman confirmed the meeting between Orcel and Rhein and described the talks as constructive.
About this summary

Originally published by Die Zeit in German. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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