Merz and Commerzbank attack Orcel's 'hostile tactics' in UniCredit takeover battle
Source · Banking desk
— Summary
German Chancellor Friedrich Merz and Commerzbank have publicly criticised UniCredit, accusing the Italian bank of "hostile" tactics in its €35bn bid to take over the Frankfurt-based lender. UniCredit chief executive Andrea Orcel on Monday unveiled a new business plan for Commerzbank, arguing it has "consistently underperformed" and that a combined group could lift net income to about €5.1bn in 2028, well above current projections.
Commerzbank formally rejected the approach, calling it "misleading" and "a speculative attempt to dismantle Commerzbank's successful business model". Merz said at a banking-association event in Berlin that while Europe needs large lenders, "this does not mean that every type of takeover is welcome in Germany", rejecting "aggressive" methods. UniCredit is already Commerzbank's largest single shareholder after building a stake in 2024, but has been blocked from a full takeover by German government opposition. Its most recent €35bn offer was tabled last month and rejected.
Orcel argued the deal would be "an in-market merger of two complementary banks that have tried to come together for 25 years", delivering pan-European cost synergies above what purely domestic deals could achieve. UniCredit has projected up to 7,000 job cuts. Commerzbank shares rose 1.2% in Frankfurt; UniCredit fell 3% in Milan. Source: Financial Times, 20 April 2026, Silvia Sciorilli Borrelli, Simon Foy and Florian Müller.
The story in one line. Germany’s chancellor and Commerzbank’s board have publicly rejected UniCredit’s €35bn approach as “hostile” and “misleading”, in one of Europe’s most politically charged bank M&A battles.
Key numbers
€35bn size of UniCredit’s full takeover offer, tabled last month and rejected
€5.1bn Commerzbank 2028 net income promised by Orcel under a combined entity - “well above” current plans
Up to 7,000 jobs UniCredit has projected would be cut in a merger
Largest single shareholder UniCredit already owns of Commerzbank, after building its stake in 2024
+1.2% Commerzbank shares / -3% UniCredit shares on the day
25 years that the two banks “have tried to come together”, per Orcel
Why it matters
The clash underscores how politically hard cross-border bank mergers remain in the EU, even when Brussels is pushing for consolidation to create stronger pan-European lenders. Germany’s Merz has sided explicitly with Commerzbank’s management and unions, while Orcel has publicly challenged Commerzbank’s strategy and offered a rival business plan - an unusual move that has clearly hardened positions.
Takeaway
UniCredit already holds leverage through its shareholding and through HypoVereinsbank, its German subsidiary since 2005. But without government consent, a full takeover is effectively blocked. Expect the stand-off to continue, with either a negotiated friendlier deal over the coming quarters or UniCredit increasing pressure via its minority stake and public proposals. The episode shows Europe is still far from a true banking union.
Source: Financial Times, 20 April 2026, Silvia Sciorilli Borrelli, Simon Foy and Florian Müller.