ECB Edges Closer to Approving UniCredit-Commerzbank Deal

The European Central Bank (ECB) has taken a step closer to approving UniCredit's proposed takeover of Commerzbank, according to an internal document outlining the regulator's preliminary assessment.

The document found 'no grounds to object' to the Italian bank's bid but noted that integration would be 'challenging and long-lasting.' German supervisors want UniCredit to develop a mitigation strategy to build support within Commerzbank, along with stronger checks and balances at UniCredit.

BaFin, Germany's financial regulator, raised concerns about UniCredit's governance and conduct during the takeover process, citing 'aggressive and partially intransparent behaviour.' The ECB acknowledged these challenges but concluded they did not justify blocking the transaction.