UniCredit CEO Orcel Participates in Virtual Meeting with Commerzbank, Sources Reveal

Milan – Andrea Orcel, the CEO of UniCredit, participated in a virtual meeting on Friday with Commerzbank, following UniCredit becoming the German lender’s largest private shareholder, according to a source familiar with the situation.

Bettina Orlopp, the newly appointed CEO of Commerzbank, also attended the conference call, which a UniCredit insider described as typical discussions that companies have with their investors. UniCredit chose not to provide any commentary on the meeting.

During a financial conference in London on Thursday, Orlopp mentioned that the two banks would take the opportunity to “exchange views” now that UniCredit has a stake in Commerzbank.

Reports from Italian newspapers indicated Orcel’s involvement in the meeting, with discussions around Commerzbank’s financial goals, although no details about a potential merger were mentioned.

Orcel has expressed that a merger would be the ideal scenario after UniCredit recently acquired a potential 21% stake in Commerzbank, pending regulatory approval. However, such a merger would necessitate significant support from all stakeholders, and Orcel has not dismissed the possibility of divesting UniCredit’s stake, which might eliminate the 30% premium in Commerzbank’s shares that resulted from the acquisition.

The investment from UniCredit has raised tensions in Germany, where Commerzbank’s management, employees, and Chancellor Olaf Scholz have all expressed concerns. Meanwhile, the Italian government has maintained a cautious position, with Deputy Prime Minister Matteo Salvini stating he would oppose any move to shift UniCredit’s headquarters to Germany as part of the transaction.

A UniCredit representative emphasized that the bank’s role is solely as an investor in Commerzbank and that there are no conversations regarding the location of a potentially merged entity. The spokesperson reaffirmed that UniCredit’s headquarters are in Italy and that there is no intention for this to change.

Additionally, reports indicated that UniCredit is in talks with unions to revamp its central offices by allowing up to 1,000 employees to retire early and retraining another 600 to be largely reassigned to branches. A streamlined corporate center in Milan may provide an advantage should UniCredit pursue a merger.

Sources familiar with UniCredit’s longstanding intentions regarding Commerzbank have noted that the headquarters’ location has historically posed challenges, with Germany eager to protect Commerzbank’s domestic roots and Italy concerned about UniCredit becoming overly integrated into the German banking landscape. Germany would account for over 55% of both customer loans and deposits in a combined entity.