The European Central Bank is leaning toward approving Italian banking giant UniCredit's acquisition of Germany's Commerzbank, saying it has no grounds to object, according to an internal document outlining preliminary views. If the takeover goes through, it would create one of Europe's largest financial institutions. According to the document obtained by Reuters, the ECB expects the integration to be difficult and lengthy, but concluded that this does not provide legitimate grounds to block the deal. Germany's supervisory authority noted that a strategy is needed to win support within Commerzbank and expressed concerns about weaknesses in UniCredit's corporate governance, but the ECB believes these have been addressed through measures such as detailed minute-taking and a strengthened supervisory framework. The document was presented to the ECB's banking supervision committee in July, with a final review scheduled for September or October. UniCredit has secured around 48 percent of Commerzbank shares in a hostile takeover worth 43 billion euros, or 49.6 billion dollars, and ECB approval would remove a major regulatory obstacle.
UniCredit SpAECB likely to approve acquisition, removing major regulatory obstacle.
Commerzbank AGECB leaning toward approving takeover; outcome uncertain for Commerzbank shareholders.
