Italian bank UniCredit, a major shareholder in Alpha Bank, has submitted a takeover proposal for the German lender Commerzbank, a move estimated to ignite a war with the German government over control of the institution. The Italian bank is offering 0.485 of its own shares for every Commerzbank share. The transaction value is estimated at approximately 34.7 billion euros, according to market assessments reported by Bloomberg. Commerzbank AG's market capitalization stood at approximately 33 billion euros ($38 billion) at Friday's market close, while UniCredit SpA is valued at approximately 96 billion euros. Commerzbank's stock closed at 29.95 euros, while UniCredit's stock stood at 63.50 euros.
Opposition from the German government
The German government, which still maintains a stake in Commerzbank dating back to the financial crisis, has repeatedly made it clear that it opposes a potential takeover of the bank by UniCredit. The offer is expected to be formally submitted in early May, with the acceptance period lasting approximately four weeks, according to the Italian bank. UniCredit announced today that it is launching a bid to acquire a stake exceeding 30% in Germany's Commerzbank, surpassing the mandatory takeover threshold stipulated by German law. UniCredit clarified that it does not expect to gain full control of the German bank, in which it already holds approximately 26% through shares and an additional 4% through total return swap contracts. "It is expected that UniCredit will acquire a stake in Commerzbank exceeding 30% without reaching full control," the bank stated in an announcement, a move that allows it a dynamic entry into the German market without further backlash.
Aiming to exceed the takeover limit
According to UniCredit, the offer is designed to surpass the critical 30% threshold provided by German takeover legislation and to create the conditions for more constructive cooperation with Commerzbank and its shareholders in the coming weeks. The bank added that, under German regulations, the relevant market supervisory authority will determine the final price of the offer.
Valuation of the offer
UniCredit estimates that the price will be set at 0.485 UniCredit shares for every Commerzbank share. This ratio implies a price of approximately 30.8 euros per Commerzbank share, representing a premium of approximately 4% compared to the German bank's closing price on March 13.
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