UniCredit CEO says Commerzbank stake lays basis for tie-up talks (updated)

Deutsche Pfandbriefbank AG

12/09/2024 10:31

(Adds further comments from paragraph 4)
    MILAN, Sept 12 (Reuters) - UniCredit's  CRDI.MI  investment
in German rival Commerzbank  CBKG.DE  laid the basis for the
Italian bank to engage in talks to explore a tie-up, Chief
Executive Andrea Orcel said on Thursday.
    Speaking to Bloomberg television a day after UniCredit
unveiled a 9% stake in Commerzbank, Orcel said the investment
had value regardless of whether it led to a merger, but added a
combination could create further value and that Europe needed
larger banks.
    "It is very simple to engage with all the stakeholders and
see if the basis for a combination is there," he said.
    "We think there is space in Germany, given the fragmentation
of the market, to add further value by consolidating," he added.
    UniCredit has been present in Germany since 2005 when it
bought Bavarian lender HVB.
    The Milanese lender had looked at Commerzbank even before
the HVB acquisition. Over the years it has repeatedly explored a
combination given the cost savings it could reap thanks to its
German footprint.
    Orcel said UniCredit had started buying Commerzbank shares
on the market over the summer as rumours intensified that the
German government may sell down its 16% stake.
    "When the government actually decided to do it, and we were
part of the investors they called to buy their stake, we made an
offer, the offer was accepted in full and we moved from 4.5% to
9% in one go," he said.

 (Reporting by Valentina Za; Editing by Giulia Segreti and Mark
Potter)
 ((valentina.za@thomsonreuters.com; +39 02 6612 9526;))