UniCredit is considering a takeover of Commerzbank
For the first time in its history, German financial institution Commerzbank exceeded a valuation of EUR 30 billion. This rise in market capitalisation was driven by an increase in share price over the last few years. In addition, the company has demonstrated positive financial performance and implemented a strategy of mergers and acquisitions.
The stable increase in Commerzbank’s indicators and profit growth interested competitor UniCredit. The lender announced its intention to acquire the German company, causing a flurry of activity on the market. Commerzbank shares rose in value by more than 3% and reached their highest point in 14 years. Positive sentiment in the banking sector, caused by changes in tariff policy in China and the US, also supported this trend.
It is worth noting that UniCredit acquired a stake in Commerzbank’s share capital in September 2024. Since then, the value of the German bank’s securities has more than doubled. In May 2025, the Italian lender announced its intention to buy a controlling stake in the bank.
Against this backdrop, the book value ratio of Commerzbank shares has surged. Previously, the bank had only reached this level during the global financial crisis. Such dynamics usually indicate the potential for further strengthening of activity in the sphere of mergers and acquisitions. But, the attracted capital is not being used for share buy-back.
Nuances of the deal
According to JPMorgan analysts, the German company is systematically implementing its strategy. This business strategy is yielding excellent results, as evidenced by the growth in dividends.
However, many experts are cautious about statements regarding a possible takeover of Commerzbank by the Italian company UniCredit. This is due to the scale of the business. Commerzbank is the third-largest bank in Germany and the 23rd-largest in Europe, with assets totalling over EUR 507 billion. Politicians are also taking an active part in the discussion:
1. Friedrich Merz has commented on the possibility of buying the local company UniCredit. In his opinion, the German bank’s share in UniCredit’s portfolio is quite small. It is not large enough for the Italian company to make a takeover offer.
2. The German finance minister has expressed his support for Commerzbank’s independent operations. He believes that the Italian lender’s approach is unacceptable to the financial institution.
3. In general, many German politicians oppose the takeover. Earlier, representatives of the German and Italian governments were negotiating a possible agreement. Nevertheless, they suspended the discussions due to the Berlin elections.
It is worth noting that the deal has acquired political significance against the backdrop of the active growth of mergers and acquisitions in the Italian banking sector. For example, UniCredit recently completed the purchase of Banco BPM with the support of the Italian government. This reflects the trend of market consolidation and adds further political context to the proposal to acquire Commerzbank.
