German Finance Minister invites UniCredit CEO to discuss Commerzbank takeover

German Finance Minister Lars Klingbeil has invited UniCredit CEO Andrea Orcel to a meeting at the Federal Ministry of Finance on September 14, signaling a shift in the German government's stance on the potential takeover of Commerzbank.

The invitation aims to present the government's position and engage in dialogue, while emphasizing that the banks themselves remain responsible for direct negotiations regarding their future. This move marks a departure from the government's previous characterization of UniCredit's actions as "aggressive and hostile" and "unacceptable" in July.

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This accompanies the talks between the two banks, which remain responsible for discussing the way forward in direct consultations.

UniCredit, which acquired nearly 50% of Commerzbank shares over the past two years, has been pursuing a takeover of the Frankfurt-based bank. The German federal government, which rescued Commerzbank with billions in taxpayer money during the financial crisis, still holds over 12% of the shares, making it the second-largest shareholder. Consequently, the government plays a crucial role in any potential acquisition.

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The German government will continue to act in the interest of the German Mittelstand, the Frankfurt financial center, and the employees.

The government has consistently stressed Commerzbank's importance for financing German businesses and the Mittelstand, as well as its role as a significant employer in Frankfurt. Ensuring these functions continue is a priority. While the government has previously rejected selling its stake, recent speculation suggests it might be open to exiting if Commerzbank and UniCredit agree on a joint strategy.

UniCredit CEO Andrea Orcel anticipates billions in savings from a Commerzbank takeover, planning job cuts and a reduction of Commerzbank's international network, which has raised concerns among Commerzbank employee representatives about potential workforce reductions. Commerzbank Supervisory Board Chairman Jens Weidmann recently advised the government to remain a shareholder for the time being to actively represent Germany's interests.

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It makes sense that the federal government remains a shareholder for now to actively represent the interests of Germany as a location.