Hessian Prime Minister sets demands for UniCredit regarding Commerzbank takeover

Hessian Prime Minister Boris Rhein has met with UniCredit CEO Andrea Orcel to present several demands regarding the planned takeover of Commerzbank. UniCredit, which has secured access to nearly 50 percent of Commerzbank shares, is seeking a full acquisition.

The Hessian state government is demanding that Commerzbank maintain its legal seat and management board in Frankfurt. Furthermore, Rhein insists that the bank must remain a stock corporation under German law and that essential banking functions must stay in Frankfurt. He specifically stated there should be no transfer of corporate banking business to Hypovereinsbank (HVB).

UniCredit has indicated potential for billions in savings through the merger, which could include significant job cuts and a reduction of Commerzbank’s international network. Concerns have been raised in Frankfurt regarding a potential merger with HVB that could shift the headquarters to Munich.

On a federal level, German Finance Minister Lars Klingbeil has invited Orcel to Berlin for discussions on September 14. The German federal government holds a roughly 12 percent stake in Commerzbank following previous state bailouts, giving it significant influence in the takeover process.