UniCredit signals interest in Commerzbank: Possible merger talks

The Italian major bank UniCredit has approached Commerzbank to initiate potential merger talks. This outreach follows shortly after UniCredit acquired a 9% stake in the German bank, according to a knowledgeable source. Commerzbank has had a checkered history regarding large mergers and acquisitions. Founded in Hamburg, it later moved its headquarters to Berlin before settling in Frankfurt in 1970. During the 1970s, the bank expanded to London, New York, and other European capitals. In 2008, Commerzbank acquired Dresdner Bank from Allianz for $14.5 billion, which led to financial difficulties during the global financial crisis. In 2009, the federal government supported the bank with a capital injection of €10 billion, for which it received a 25% plus one share stake. In 2017, US investor Cerberus built a 5% stake in Commerzbank. At that time, UniCredit expressed interest in a possible merger with the German bank. A year later, Commerzbank was removed from the DAX index, but leading banks such as Deutsche Bank denied merger rumors. In 2019, Cerberus showed openness to a merger of the two largest German banks. Deutsche Bank and Commerzbank entered talks but aborted them after a few weeks. UniCredit engaged advisors for a potential offer. Following the failed merger, Commerzbank's supervisory board decided to cut numerous jobs and close branches. Further restructuring and executive departures were on the agenda for 2020 and 2021, with then-new CEO Manfred Knof announcing the elimination of 10,000 positions and the closure of hundreds of branches. Knof emphasized the bank's independence, which remained a key theme in 2022 and 2023. Commerzbank returned to the DAX, and Knof continued to dismiss merger speculations. In 2024, Commerzbank again signaled no interest in a merger, while the federal government aimed to reduce its stake. In September 2025, Knof decided not to extend his contract. UniCredit has now renewed discussions about a possible merger, indicating the Italian bank's strong interest in an expanded presence and consolidation in the European banking market.