Commerzbank chairman unlikely to push for UniCredit merger, report says

BERLIN (Reuters) – Commerzbank Supervisory Board Chairman Jens Weidmann said there was little chance of an amicable merger with UniCredit after the Italian bank bought a majority stake in the German lender, Handelsblatt newspaper reported.

“It’s like any relationship: If the start doesn’t work out, it’s going to be difficult,” Weidman said in an interview published Monday.

They expressed doubt that the hostile takeover of the banking sector could create sustainable value.

“In the merger, it is important that the management first talks in a spirit of trust and create a common understanding. Unicredit decided against this and surprised us. That is not a good style,” said Weidman.

UniCredit now controls a 28% stake in Commerzbank. The Italian lender has a direct holding of 9.5%, while Unicredit secured a total of 18.5% through financial instruments.

According to Weidmann, it would be beneficial for Germany’s financial sovereignty to have two large independent private banks, Deutsche Bank and Commerzbank.

In the year A look at the 2005 takeover by UniCredit of Hypoverensbank and Bank Austria shows how banks can evolve after losing their independence, he said.

“Commerzbank’s footprint in Germany may be smaller and Frankfurt’s attractiveness as a financial center will suffer,” Weidmann said, adding that many customers, particularly those from the small and medium enterprise sector, would be forced to reposition themselves in response. Such an activity.

(Writing by Miranda Murray; Editing by Jamie Freed)