As its merger with Italian giant UniCredit looms, Germany’s Commerzbank has said that it was “convinced” a deal between the two banks could create value, in a markedly more bullish stance on a potential tie-up.
Commerzbank’s CEO Bettina Orlopp made the statement as the German lender reported a 45% increase in profit for the third quarter, completing what it called the business’ best nine months in history.
The entity registered a net profit of 859 million euro (USD 967.32 million) in Q3, compared with a profit of 591 million euro a year earlier.
Analysts had on average expected a profit of 864 million euro, according to a consensus forecast published by Commerzbank.
“We are convinced that together with UniCredit, we can create value by consistently leveraging the strengths of both banks,” Orlopp remarked.
Commerzbank expects UniCredit’s takeover offer to be completed “in the coming months,” apart from informing the investors about the deal having “tangible cost and revenue levers.”
Unlike Orlopp, Commerzbank staff remain wary about multiple rounds of job cuts through restructuring that will kick in once the two businesses combine.
“What is still missing is a fair price and fair consideration of the interests of all parties involved, as well as a plan for credible synergies and a viable and meaningful integration for Commerzbank,” Alexander Michaut, an official with the DBV labor union and member of Commerzbank’s works council, wrote in a communication to union members.
Commerzbank, after putting up a fierce two-year fight against UniCredit’s multiple takeover proposals, had to drop its fight in July this year, with the Andrea Orcel-led Italian biggie successfully building an economic and voting stake approaching 48% (around 47.6%) through its extended yet hostile 45 billion euro (USD 50.51 billion) share-building campaign.
The deal, which also faced opposition from the German political circle, received a significant boost last month when the ECB (European Central Bank) approved the strategic acquisition.
“Shareholders benefit from our delivery and additional potential within UniCredit Group,” Commerzbank said on Thursday.
Despite Orlopp’s reconciliatory tone, Orcel has remained adamant about his demand of Commerzbank changing its top leadership, including the bank’s chair, Dr. Jens Weidmann.
The UniCredit boss is also against Berlin retaining two supervisory board seats, a demand by the German government, which still retains a 13.3% stake in Commerzbank it acquired through a bailout during the global financial crisis.
UniCredit, however, has pledged to expand financing for Germany’s medium-sized Mittelstand businesses, seeking to reassure corporate clients and political stakeholders as it moves closer to taking control of the lender in a potential landmark European banking deal.
Orcel remarked, “UniCredit remains committed to supporting German businesses and would build on the existing corporate banking relationships of HypoVereinsbank (HVB) and Commerzbank.”
“We will strengthen our support for corporate clients, building on and further developing the existing networks and relationships of HVB and Commerzbank. We will increase our capacity to finance corporate growth,” he added further.
UniCredit also pledged to provide additional financing for companies pursuing strategic investments, business transformation, acquisitions, and expansion.
Commerzbank welcomed the commitment, which arrived amid concerns among German businesses, bankers, and politicians that a takeover by the Italian lender could weaken financing support for domestic companies.
The Mittelstand, Germany’s network of small and medium-sized businesses, is known for playing a key role in the European country’s industrial economy and export sector.
Concerns about its access to credit have been among the key points of the German resistance to UniCredit’s proposed takeover.
UniCredit eyes the end-2026 window to acquire Commerzbank, with approximately 50% of its voting rights, subject to the completion of the remaining regulatory processes and conditions.
The bank, Italy’s second-largest lender, has operated Munich-based HVB since 2005 and began building its investment in Commerzbank more than two years ago.
Orcel has already secured sufficient shares to control ordinary shareholder resolutions while remaining below the threshold that would trigger a mandatory buyout of minority investors in Commerzbank’s Polish subsidiary, mBank.
German stakeholders, including the government, have also sought assurances that Commerzbank would retain its Frankfurt headquarters, protect jobs, and continue financing German businesses.