Italian banking group UniCredit is reportedly preparing to seek approval from the European Central Bank (ECB) to acquire up to 30% stake in Germany’s Commerzbank.
The decision to apply for the clearance stems from German regulations, which require a mandatory buyout offer when an investor’s stake reaches that level, reported Reuters citing undisclosed sources privy to the matter.
According to the news agency, UniCredit’s filing is expected in the coming days.
The formal application will be submitted to Germany’s financial regulator BaFin, which will then forward it to the ECB. The ECB typically has 60 days to respond, with the possibility of extending the timeframe to 90 days if required.
Unicredit CEO Andrea Orcel said that the permit would offer the “flexibility” necessary for planning his next strategic step, reported Reuters.
The Italian banking group has recently become the largest private investor in Commerzbank, after successfully outbidding competitors to acquire a 4.5% stake from the German government.
This followed an earlier purchase of another 4.5% interest on the open market, bringing UniCredit’s total holding to 9%.
Under European banking regulations, the ECB must approve any investor seeking to hold 10% or more of a bank. The same reviews are required for stakes of 20%, 30%, and 50%.
The Italian lender’s current stake has fuelled speculation that a full takeover of Commerzbank could be on the horizon.
Orcel has acknowledged this possibility by stating that a full acquisition could proceed if it gains broad support and would “create added value for Commerzbank, UniCredit, Germany, and Europe”, said Reuters.
However, Orcel has also left the door open to other options, including maintaining the current stake or selling it. UniCredit disclosed that it is seeking ECB approval to increase its stake above the 9.9% threshold, allowing it to act “if and when necessary.”
In July this year, UniCredit agreed to acquire the entire share capital of Vodeno and Aion Bank in a deal worth about €370m.
Vodeno is a fintech company providing banking-as-a-service (BaaS) solutions, while Aion Bank is a subscription-only digital bank.
