Italian banking giant Unicredit has become the second-largest shareholder of Commerzbank. During the sale of a stake held by the German government, the bank led by Andrea Orcel made a higher bid than other investors.

Unicredit now holds around 9 percent of Commerzbank. Half of this stake comes from the share sale announced by the German government a week ago, while the other half was acquired through market purchases.

Additionally, the bank has requested permission to increase its stake beyond the 10 percent threshold, according to a statement on Wednesday.

The German government sold 4.49 percent of its shares in a package to the Italians. The price was 702 million euros, with a placement price of 13.20 euros per share, which is 60 cents or nearly five percent above the closing price from Tuesday.

Higher Bid

Unicredit was willing to pay more than the value of the shares on the stock market on Tuesday evening, as reported by the financial agency on Wednesday. All of the shares offered by the government were allocated to Unicredit «due to a significant overbid of all other offers within book building».

Unicredit also purchased additional shares on the market.

Acquisition Speculations

Unicredit’s entry into Commerzbank has fueled speculation about a potential takeover of the German competitor. The bank has not disclosed whether it plans to increase its stake further. To remain flexible, the bank is seeking approval from regulators to raise its stake above 9.9 percent.

«Unicredit will collaborate with Commerzbank AG to explore value-creating opportunities for all stakeholders of both banks,» the statement said.

Second-Largest Shareholder

With this move, approximately 12 percent of Commerzbank remains in government hands, and Unicredit has immediately become the second-largest shareholder.

Unicredit has been active in the German market for nearly 20 years through its subsidiary HypoVereinsbank.

The market values of both banks have significantly recovered since the stock crash in early 2020 at the start of the Covid pandemic. Unicredit, with a market capitalization of nearly 60 billion euros, is considerably larger than Commerzbank, which has a market capitalization of just under 15 billion euros.

Commerzbank Shares Surge

The stock prices of the two banks have reacted differently. Unicredit shares, after initial losses, were slightly up by 0.3 percent to 36.18 euros by Wednesday afternoon. Commerzbank shares surged nearly 17 percent to 14.73 euros.