Caught cold by UniCredit’s swoop on Commerzbank, Germany will want to avoid a national embarrassment

Published On Sep 25, 2024, 1:08 AM

Italy's UniCredit is making a significant move by increasing its stake in Germany's Commerzbank to around 21%, with intentions to raise it to 29.9%. This unexpected maneuver has caught German authorities off guard and has led to a backlash from the German government, which fears job losses and national embarrassment. Commerzbank's management is also resistant to the takeover, emphasizing that a UniCredit acquisition could lead to substantial job cuts. The situation raises questions about the implications for the European banking project and whether Germany might block the merger to protect national interests.