Commerzbank Shares Drop 3% as German Government Retains Stake, Reports Reuters

FRANKFURT (Reuters) – Commerzbank shares fell 3.1% on Monday following the government’s decision to maintain its 12% stake in the German bank for the time being, a move that is likely to delay any potential merger talks with Italy’s UniCredit.

On Friday, Germany’s Finance Agency announced that the state will not sell additional shares in Commerzbank for now, emphasizing that the bank’s strategy is focused on independence. This marks a definitive indication that the government currently opposes a takeover of the country’s second-largest lender.

The shares of Commerzbank had previously risen approximately 24% since September 11, when UniCredit revealed it had acquired a 9% stake in the bank and expressed interest in a merger.

Analysts suggest that the recent announcement from the finance agency makes it unlikely for UniCredit to initiate a takeover bid in the near future.