EU antitrust chief calls for cross-border bank mergers

Ribera told the European Competition Forum in Brussels on Wednesday that cross-border mergers of large European banks are needed to deepen capital markets and finance green and digital transitions.yahoo
Germany’s Finance Agency on Tuesday formally rejected UniCredit’s roughly €39 billion bid for Commerzbank, citing an inadequate premium and an “aggressive approach.”reuters
The clash highlights a widening gap between the Commission’s push for continent-wide banking champions and national governments’ resistance to cross-border takeovers.politico

EU Antitrust Chief Ribera Urges Support for Cross-Border Bank Mergers

European Commission competition chief Teresa Ribera on Wednesday called on EU member states to back cross-border bank mergers, describing the completion of the single market as one of Europe’s most urgent competitiveness priorities. Her remarks, delivered at the European Competition Forum in Brussels, came a day after Germany formally rejected UniCredit’s proposed takeover of Commerzbank, underscoring the tension between EU-level ambitions for banking consolidation and national resistance to such deals.yahoo

Ribera’s Case for Consolidation

“Deeper and more integrated capital markets matter more than ever,” Ribera said. “Completing the single market remains one of the most urgent priorities for Europe’s competitiveness. Cross-border mergers of our large European banks could help in that direction”. She argued that such mergers are needed to finance Europe’s green and digital transformation, and framed the ongoing revision of EU merger guidelines — draft versions of which were published on April 30 — as an effort to adapt competition analysis to a changed economy rather than to weaken oversight.cryptobriefing

Germany’s Rejection of UniCredit

Germany’s Finance Agency on Tuesday formally rejected UniCredit’s offer for Commerzbank shares, valued at roughly €39 billion, on the final day of the official acceptance window. The agency, which manages the German state’s stake of more than 12% in Commerzbank, said the bid did not offer “an appropriate premium” and criticized what it called UniCredit’s “aggressive approach”. “The steering committee supports the strategy of independence of Commerzbank AG and rejects the aggressive approach of UniCredit,” the agency stated. Investors will have an additional two-week window from June 20 to July 3 to tender their shares, with final results expected on June 19.reuters

A Widening Gap

The juxtaposition of Ribera’s speech and Berlin’s rejection illustrates a deepening divide over the future of European banking. While the Commission has moved to ease its merger framework to foster continent-wide champions, national governments remain protective of domestic lenders. Ribera has previously cautioned member states against exploiting new resilience and security exceptions in EU guidelines to favor national companies. Frankfurt prosecutors have also opened a preliminary investigation into potential market manipulation related to the UniCredit offer, adding a further layer of complexity to Europe’s most closely watched banking deal.politico