UniCredit takeover of Commerzbank nears ECB approval

The European Central Bank (ECB) is reportedly leaning toward approving UniCredit’s €43 billion takeover of Germany’s Commerzbank. An internal document suggests that while regulators have found “no grounds to object” to the deal, they anticipate a “challenging and long-lasting” integration process.

UniCredit has built a roughly 48% stake in Commerzbank through a hostile bid, which has faced resistance from Commerzbank’s management, staff, and the German government. German regulator BaFin has raised concerns regarding UniCredit’s governance and the transparency of its stake-building process, calling for stronger checks and balances and a mitigation strategy to build support within the German institution.

The ECB’s Supervisory Board is reviewing the application, with a final decision expected in September or October. If approved, the merger would create one of Europe’s largest lenders and represent the most significant EU banking deal since the global financial crisis.