After the unexpected entry of the Italian major bank into the Frankfurt financial institution, Commerzbank’s supervisory board chairman Jens Weidmann sees only slim chances of a harmonious merger with UniCredit.
“It’s like in any relationship: if the start is missed, it will be difficult” Weidmann told the “Handelsblatt”. “It would require a lot of work to establish sufficient trust and enable result-oriented discussions.”
UniCredit has secured access to 28% of Commerzbank’s shares through financial instruments and would prefer to take over the institution completely. However, in Germany, resistance is growing. “I have doubts that a hostile takeover in the banking sector can sustainably create value” Weidmann said. In the context of mergers, it is crucial that the management initially engages in trustful discussions and develops a common understanding. “UniCredit has decided otherwise and surprised us with its entry. That’s not a good style.”
According to Weidmann, it would be beneficial for Germany’s financial sovereignty to have two major independent private banks, the Deutsche Bank and the Commerzbank, continue to exist. “The developments that banks can take after losing their independence can be seen in the Hypo-Vereinsbank and the Bank Austria, which were taken over by UniCredit in 2005” he said. “The footprint of the Commerzbank in Germany would likely be smaller, and the attractiveness of the financial hub Frankfurt would suffer.