Germany Must Oppose UniCredit’s Takeover of Commerzbank, Employees Warn According to Reuters

By Tom Sims and Christian Kraemer

FRANKFURT – Employees at Commerzbank, alongside a prominent labor union, have urged the German government to resist a takeover of the bank by Italy’s UniCredit, citing concerns over potential significant job losses if the acquisition proceeds.

In a joint statement, the Commerzbank works council and the Verdi union expressed their strongest opposition yet to the prospect of a merger between the two financial institutions. They are appealing to the government to collaborate with employees to maintain a strong and independent Commerzbank.

This appeal follows UniCredit’s recent announcement that it has acquired a 9% stake in Commerzbank, both from the German government and through the open market, with its CEO indicating an interest in exploring a merger.

The German government, which currently holds a 12% stake in Commerzbank, will be instrumental in determining whether any deal can materialize. Uwe Tschaege, chairman of Commerzbank’s works council, emphasized the need for careful consideration: "We call on the German government not to make any hasty decisions regarding the sale of its shares."

In response to these demands from employees and the union, a government spokesperson indicated that the matter is under thorough analysis.

As of now, UniCredit has not provided a comment, and Commerzbank has also remained silent on the issue.

Commerzbank plays a critical role in the German economy, serving over 25,000 business customers and processing nearly a third of the country’s foreign trade payments with a workforce exceeding 42,000 employees.

UniCredit’s interest in acquiring Commerzbank represents a significant move towards creating a larger pan-European banking entity, though it is expected to encounter substantial political resistance within Germany.

German Finance Minister Christian Lindner, whose ministry oversees the Commerzbank stake, stated that the government does not intend to maintain a long-term investment in a bank. However, sources indicated there are currently no plans for further share sales, and Commerzbank has requested that the government retains its stake for the time being.