ECB Eyes Approval for UniCredit-Commerzbank Deal Despite Integration Concerns

The European Central Bank (ECB) is leaning towards 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 likely be 'challenging and long-lasting.'

The ECB's Supervisory Board presented the document last month, which also mentioned concerns raised by Germany's financial regulator BaFin over UniCredit's governance and conduct during the takeover process. BaFin cited 'aggressive and partially intransparent behaviour' by UniCredit, as well as 'weaknesses in checks and balances.'

UniCredit has built a 48% stake in Commerzbank through a €43 billion hostile bid. The offer has faced resistance from Commerzbank's management, employees, and the German government, although some opposition has recently softened.