Commerzbank CEO vows to block UniCredit takeover

Source: Pexels

UniCredit recently acquired a 21% stake in Commerzbank, signalling interest in further investment and reigniting speculation about consolidation within Europe's banking sector.

However, a larger takeover attempt could face significant resistance, including political and union opposition in Germany, as well as internal pushback from some within Commerzbank, raising concerns about the feasibility of such a merger.

The move has angered German unions and politicians, including Chancellor Olaf Scholz, who fear job losses. Orlopp emphasised the challenges of integrating two large banks and vowed to resist any takeover attempt.

This development has heightened concerns over the future of Commerzbank and its independence.

In her first media interview since assuming the role, Orlopp remarked that after acquiring a bank in 2008, Commerzbank spent several years integrating the lenders' systems.

"We cannot afford such a standstill in today's world, which is characterised by so many technological upheavals and very intense competition," she said in the interview published Monday.

Orlopp expressed concerns that a potential merger could negatively impact Commerzbank’s credit rating, which is currently higher than UniCredit’s according to S&P.

She warned that the bank's rating would likely decline significantly, leading to the loss of customers who require high credit ratings for their business dealings.