UniCredit's €35B Commerzbank takeover bid sparks market turmoil and political backlash
UniCredit has launched a €35 billion bid to take over Commerzbank, sending shockwaves through German markets. The surprise offer pushed Commerzbank's share price up by nearly 10% on Monday, lifting broader market sentiment. Yet opposition from the German government and labour groups has already cast doubt on the deal's success.
The proposed takeover values Commerzbank at €30.80 per share, based on a ratio of 0.485 new UniCredit shares for each Commerzbank share. Market analysts see the move as a strategic push by UniCredit CEO Andrea Orcel to force Commerzbank's leadership into negotiations. The bid dominated trading activity, overshadowing earlier investor concerns and even boosting stocks like Bayer and Siemens Energy.
The German government, which holds a 12% stake in Commerzbank, has firmly rejected the offer. Chancellor Friedrich Merz stressed the need for a 'strong and independent Commerzbank,' though no formal regulatory blocks have been imposed. Meanwhile, the European Central Bank and Germany's competition authority approved UniCredit's earlier stake increase to nearly 30% in March 2025.
Labour groups have also spoken out. The Verdi union warned of potential job cuts, while Commerzbank's works council opposed the deal outright. Elsewhere, rising oil prices dragged down cyclical stocks and travel firms, with Lufthansa and TUI both losing value.
The DAX's next moves hinge on how politicians and companies respond to UniCredit's bid. Traders are watching the 22,900-point level as critical support, while a sustained recovery would require reclaiming 24,000 points. For now, the deal's future remains uncertain amid strong resistance from Berlin and worker representatives.
