Commerzbank-Merger Talks Intensify as Frankfurt Posts Record Earnings

Commerzbank and UniCredit have begun formal talks about a potential merger, following months of public posturing.

The meeting between Commerzbank's CEO Bettina Orlopp and UniCredit's Andrea Orcel focused on balance-sheet, legal, and risk questions related to regulatory scrutiny from the European Central Bank.

Commerzbank's improved financial performance has given it leverage in negotiations. The bank reported a 14% increase in first-half operating profit to €2.7 billion, while net income surged 40% to a record €1.8 billion.

The ECB has already green-lit UniCredit's application for a change of control, which could pave the way for a merger with Commerzbank's German arm, HypoVereinsbank, in two to three years.