By Matthias Goldschmidt and Elena Vardon
Germany's government continues to be opposed to a takeover of lender Commerzbank by Italy's UniCredit.
"As has been emphasized several times--including publicly--the German government is committed to a strong and independent Commerzbank," the country's new chancellor Friedrich Merz said in a letter dated May 26 that was shared by works council chair Sascha Uebel on LinkedIn.
"I share the view of the Federal Minister of Finance that an uncoordinated and unfriendly approach like that of the UniCredit Group is unacceptable," Merz added. "This is especially true when it comes to a systemically important bank like Commerzbank."
UniCredit first disclosed a 9% stake in the German bank in September, reviving speculation that it could pursue a tie-up of the two banks. The Italian group has since built up its position to 28%--overtaking the German government as Commerzbank's largest shareholder--by entering into financial contracts tied to the shares.
Chief Executive Andrea Orcel has been trying to engineer a merger to add to UniCredit's existing presence in Germany and extend into Poland but has seen the process delayed by political opposition and elections that took place in February. Orcel has said the position remains solely an investment and that he wants to take his time before deciding which strategic option to pursue.
Commerzbank earlier this year outlined a new strategy with higher profitability and returns targets to defend its independence and convince investors of its standalone prospects.
Write to Elena Vardon at elena.vardon@wsj.com
(END) Dow Jones Newswires
06-10-25 0953ET
