Commerzbank’s New CEO Engages in Initial Talks with UniCredit, Sources Reveal

By Tom Sims

FRANKFURT – Commerzbank’s newly appointed CEO Bettina Orlopp held a virtual meeting with bankers from UniCredit on Friday morning, according to sources familiar with the situation. This meeting marks the beginning of discussions between the German bank and its Italian counterpart.

UniCredit, Italy’s second-largest bank, is actively seeking a merger after acquiring a stake in Commerzbank earlier this month. Meanwhile, Commerzbank, Germany’s second-largest bank, is focusing on maintaining its independence amid this unsolicited interest.

Details about the specific executives from UniCredit who participated in the meeting remain unclear.

Orlopp, who assumed her role as CEO earlier this week, mentioned during a financial conference in London that the two banks would meet to "exchange views" following UniCredit’s acquisition of shares.

UniCredit surprised Commerzbank by purchasing a 9% stake and indicated plans to acquire more shares pending regulatory approval. The Italian bank is eager to open discussions regarding a potential merger.

Following these developments, Commerzbank’s stock rose 0.5% in Frankfurt, building on a nearly 7% increase from the previous day. In contrast, UniCredit’s shares declined by 0.8% after a nearly 5% rise.

Since the announcement of its stake, Commerzbank’s shares have increased by approximately 30%.

UniCredit’s pursuit of a merger represents a significant effort towards creating a pan-European banking institution, although it faces substantial political opposition in Germany, especially in light of upcoming national elections.

Commerzbank’s management, its workforce, and German Chancellor Olaf Scholz have expressed their resistance to a potential takeover; however, some major investors and business leaders are open to discussions.

UniCredit’s CEO has long been interested in a merger with Commerzbank and indicated this week that such a union would be advantageous. Orlopp stated that while Commerzbank remains open to conversations, it is essential to evaluate the feasibility of synergies and the risks associated with any potential deal.

"Sometimes it makes sense, sometimes it doesn’t make sense, and that is something we need to find out jointly," Orlopp noted.

Reports of Orlopp’s participation in the meeting were initially revealed by Bloomberg.