German Banking Titans Meet!Commerzbank (CBK) Aims to Stay Independent,While UniCredit (UCG) Shows Interest in Acquisition.The game to reshape the European banking landscape may have just begun.
Recently,the board of directors of Commerzbank stated that the bank is working hard to improve profitability and increase returns to shareholders in the coming years.
Previously,UniCredit has taken action to increase its stake in Commerzbank to 21%,surpassing the German government to become its largest shareholder.
"Commerzbank is continuously expanding its independent status,becoming a strong pillar in the German banking market and a reliable partner for the domestic economy," said Commerzbank Chairman Jens Weidmann.
Commerzbank has raised its net profit forecast for 2027 from the previous 3.4 billion euros to 3.6 billion euros ($4.01 billion).The bank has also increased its expected return on tangible assets from over 11% previously to over 12% by 2027.
On Thursday,Commerzbank's share price rose by more than 6%,closing at around 16 euros,reaching its highest price since 2012.
"We won't do anything foolish."
UniCredit's actions have sparked speculation about a possible acquisition of Commerzbank and have raised concerns among German officials and union leaders,who fear that the acquisition could lead to job cuts,hand over financial influence to Italy,and deprive German companies of funding.
Commerzbank's finance director,Bettina Orlopp,said: "UniCredit is now a shareholder and investor,and it is normal to exchange views."She also stated that the management will maintain an open attitude,assessing various options to see if they can create value for shareholders,and emphasized the need to maintain stability in the situation.
"We won't do anything foolish...any ideas of making crazy acquisitions or quick sell-offs now — we won't do that."
Intesa Sanpaolo CEO Andrea Orcel said on Wednesday that there are various possibilities for its investment in Commerzbank.Orcel has expressed interest in making a deal and is eager to balance with large US banks,but he warned that a deal will only proceed if it receives broad support from stakeholders.
Leave a Reply