ROME, Sept 18 (Askume) – The Italian government is positive about UniCredit’s efforts to create a larger European banking group through a merger with Commerzbank (CBKG.DE) , but only if the Milan bank continues to maintain its central bank status.
Italy’s finance ministry declined to comment, while UniCredit was also not available for comment.
UniCredit spent 1.5 billion euros ($1.7 billion) to buy a 9% stake in German rival Commerzbank, becoming Commerzbank’s largest private investor.
Italy’s second-largest bank will likely seek regulatory approval to acquire up to 30% of commercial bank shares, sources told Askume on Wednesday, as it said it was considering a potential merger in addition to other “value creation opportunities”. Explore possibilities.
The Roman government has so far kept itself away from this move.
The government did not object to UniCredit’s move, provided core operations were not shifted to Germany if the merger went through, sources told Askume, speaking on condition of anonymity because of the sensitivity of the matter.
Others said Rome was generally wary of a move by Auxerre, after UniCredit pulled out of a last-minute bid to buy domestic rival Monte dei Paschi di Siena (BMPS.MI) in 2021.
In 2005, UniCredit acquired Bayerische Bank HVB. Although smaller than Commerzbank, UniCredit’s German operations are more efficient and profitable and could save costs and increase profits if the two entities merged.
Former UniCredit CEO Jean-Pierre Mustier had previously tried to take over Commerzbank but faced political opposition in Italy as he planned to create a German holding company to lead the bank’s operations.
Italian politicians have traditionally been concerned about cross-border consolidation of their lenders because of their key role in helping the Treasury refinance the country’s about 3 trillion euros ($3.3 trillion) of public debt.
By comparison, Italy’s debt is around 140% of GDP, which has long been a concern for Germany.
European bankers have long complained that politics and regulations hamper cross-border mergers and acquisitions, leaving the group’s lenders far behind U.S. rivals in size and market capitalization.
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