UniCredit CEO says ECB likely to rule it controls Commerzbank

EU Competition Chief Warns Against Blocking Cross-Border Bank Mergers

Teresa Ribera, the European Union’s competition chief, has urged member states to stop resisting cross-border bank consolidation, arguing that deals benefiting the single market should be welcomed rather than thwarted by national governments.

Ribera’s comments, delivered at a conference on June 17, came one day after Germany formally rejected UniCredit’s bid to acquire a controlling stake in Commerzbank, citing a low price and what Berlin called an “aggressive approach” by the Italian lender. The remarks represent the strongest signal yet from Brussels that it views national resistance to cross-border banking deals as an obstacle to European competitiveness.reuters

A Direct Challenge to Berlin

“Completing the Single Market remains one of Europe’s most urgent competitiveness priorities. Cross-border mergers of our large European banks would help in that direction. It is urgently needed,” Ribera said, according to Reuters. “Member States should applaud these deals for the overall good.”yahoo

She took particular aim at governments that champion the idea of pan-European corporate giants while blocking the policies needed to create them. “Europe cannot simultaneously argue that it needs globally competitive firms and refuse to examine whether its analytical frameworks properly reflect the realities of global competition, technological transformation and investment needs,” she said.investmentmonitor

Germany, which holds nearly 13 percent of Commerzbank as its second-largest shareholder, has backed the German bank’s independence strategy and stated that UniCredit’s offer lacked an adequate premium. Frankfurt prosecutors have also opened a preliminary investigation into potential market manipulation linked to the bid.wsj

UniCredit Presses Ahead

Despite Berlin’s opposition, UniCredit has continued to build its position. The Italian bank secured acceptances for 12.5 percent of Commerzbank’s shares during the initial offer period, which ended June 16, bringing its total stake to 42.5 percent. UniCredit CEO Andrea Orcel has said the European Central Bank is likely to determine that this level of ownership constitutes de facto control of Commerzbank.reuters

The standoff comes as France, Italy, and Spain have jointly proposed a package of reforms to ease cross-border banking operations in Europe, according to Bloomberg. Bankers and regulators have identified the absence of a common eurozone deposit guarantee scheme as the primary structural barrier to deeper integration.bloomberg

Broader Push for Banking Union

Ribera’s intervention reflects a growing consensus among EU policymakers that the bloc’s fragmented banking sector is ill-equipped to mobilize the trillions of euros needed for green and digital investments. The European Commission has also recently warned Spain that it violated EU rules by intervening in BBVA’s hostile bid for Banco Sabadell, underscoring Brussels’ willingness to challenge national governments that interfere in banking mergers.politico

Whether Germany will soften its stance remains uncertain. Government sources told Reuters that UniCredit’s plans to take Commerzbank private would be “exceedingly challenging” as long as Berlin retains its stake.reuters