UniCredit Closes in on Majority Control of Commerzbank as ECB Review Begins

UniCredit's bid to take control of Commerzbank has entered a critical phase as Germany's financial watchdog, BaFin, completes its review and forwards UniCredit's application to the European Central Bank. The Italian banking group now holds nearly 59 percent of voting rights after combining its direct stake with additional shares held through financial instruments.

The German government remains Commerzbank's second-largest shareholder with approximately 12.7 percent, but has stated it will not sell its position into UniCredit's offer. This leaves uncertainty surrounding the outcome as the formal decision-making process rests with the ECB.

Meanwhile, Commerzbank's operational performance has been strong, with a record first-half net profit of €1.8 billion and revenues up 7 percent to €6.5 billion. The bank's management has raised its full-year guidance and unveiled an additional share buyback tranche of up to €1.2 billion.

Chief executive Bettina Orlopp has expressed openness to engagement with UniCredit, suggesting that only a collaborative approach can create value. However, the works council has pushed back against this idea, insisting labour representatives are not negotiation partners.