Germany's finance minister was due on Monday to meet UniCredit CEO Andrea Orcel to seek guarantees over the future of Commerzbank, as the Italian lender gears up to complete a takeover of its German rival. Lars Klingbeil would urge Orcel to protect jobs in Germany and ensure Commerzbank remains a key lender to the country's small- and medium-sized businesses, Berlin said. Despite fierce resistance from Berlin and the German lender, UniCredit has built up a stake of nearly 50 percent in Commerzbank and is close to sealing one of Europe's biggest banking mergers in recent years. A German finance ministry spokesman conceded the banks had moved into a different phase now and were negotiating a transaction, stressing that Commerzbank has over 40,000 employees whose interests Berlin wants to safeguard, that its core business model in financing Germany's small businesses should be preserved, and that its main operations should remain in Frankfurt. Berlin still believes it has some influence over the deal through its representation on Commerzbank's supervisory board and its roughly 12-percent stake in the bank, both legacies of a state bailout during the financial crisis, but its leverage is now likely to be diminished given the size of UniCredit's stake.
Commerzbank AGUniCredit is close to completing a takeover of Commerzbank despite Berlin's resistance, with Germany seeking job and lending guarantees.
UniCredit SpAUniCredit has built a nearly 50% stake in Commerzbank and is close to sealing one of Europe's biggest banking mergers.
