ECB Backs UniCredit Bid Despite Governance Concerns

The European Central Bank (ECB) is leaning towards approving UniCredit's proposed takeover of Commerzbank, according to an internal document. The document found 'no grounds to object' to the Italian bank's bid but warned that integration would be 'challenging and long-lasting.'

UniCredit has built a 48% stake in Commerzbank through a €43 billion ($49.60 billion) hostile bid, which has faced resistance from Commerzbank's management, employees, and the German government.

The document also raised concerns about UniCredit's governance and conduct during the takeover process. BaFin cited 'aggressive and partially intransparent behavior' by UniCredit and called for stronger checks and balances.