ECB Backs UniCredit's Commerzbank Takeover Amid Integration Concerns

The European Central Bank (ECB) has taken an internal stance to approve UniCredit's €43 billion hostile takeover bid for Commerzbank, according to a leaked document.

The document, which was presented to the ECB's Supervisory Board in August, highlights that while the bank expects a 'challenging and long-lasting' integration process, it has found no grounds to object to the deal.

The ECB acknowledges concerns over UniCredit's governance, including its aggressive and opaque behavior during the takeover bid, as well as weaknesses in checks and balances at the Italian bank. However, it notes that supervisory measures have already been put in place to address these issues.

BaFin, Germany's financial regulator, has also raised concerns over UniCredit's conduct, highlighting the need for a mitigation strategy to rebuild trust among Commerzbank stakeholders.