Germany’s Central Bank Chief Warns of Risks in Potential Commerzbank Takeover
Germany’s central bank chief, Michael Theurer, has expressed concerns over a potential hostile takeover of Commerzbank by Italy’s Unicredit, citing the risks involved in such a deal. Theurer, who is also a member of the European Central Bank’s (ECB) supervisory board, emphasized that the further scrutiny of the takeover would not be a mere formality.
While acknowledging that mergers and acquisitions can bring opportunities, Theurer stressed that they also carry risks, particularly in the case of hostile takeovers. He noted that Unicredit’s CEO, Andrea Orcel, has repeatedly emphasized that he would not act against the German government’s will and therefore the responsibility for the next step lies with the bank’s owners, including the German government as a major shareholder.
Theurer also highlighted the need for a more in-depth examination of a takeover exceeding the current 29.9% stake, stating that such a move would require a new, more rigorous review by the banking supervisory authority. He emphasized that the current ownership control procedure is complete up to a 29.9% stake and anything beyond that would raise new questions that would need to be carefully examined in a new procedure.
Theurer’s comments come as the far-right Alternative for Germany (AfD) party gains influence in local politics, with some of its members taking up positions in supervisory boards of savings banks and other financial institutions. In response, Theurer stressed that the banking supervisory authority’s focus is on the qualifications and reliability of candidates, not their political beliefs, which are often unknown.
He also called for swift reforms in the German cooperative banking sector, following a series of costly scandals, urging the people’s and Raiffeisen banks to develop their regulations further and address problems in a timely manner. Theurer praised the president of the Federation of German People’s and Raiffeisen Banks, Frau Kolak, for recognizing the urgency of the situation.