Shares of Commerzbank (ETR) and UniCredit (OTC) fell on Monday following news that the German government will retain its 12% stake in Commerzbank, putting a potential merger with UniCredit on hold. As of early Monday, Commerzbank dropped 4.9%, while UniCredit was down 1.6%.
Germany’s Finance Agency confirmed it would not sell additional shares, signaling the government’s intent to keep Commerzbank independent. This decision has been seen as the clearest opposition yet to a potential takeover by UniCredit. Concerns about job cuts and reduced lending to small and medium-sized businesses had already raised opposition to the merger.
Commerzbank, a key player in Germany’s economy with over 25,000 business clients and involvement in one-third of the country’s foreign trade, employs more than 42,000 people. The German government’s position is expected to heavily influence any future merger discussions.
