UniCredit to Raise Capital Buffers Amid Commerzbank Takeover Bid

Italian banking group UniCredit may have to increase its hard core capital after regulators assess that it effectively controls Germany's Commerzbank, even though it does not yet own a majority of shares. UniCredit has secured just over 30% of Commerzbank and can lift its stake to 42.5% through a derivative‑for‑share swap, which should be sufficient for a majority at the upcoming shareholders' meeting.

The European Central Bank could require UniCredit to hold additional capital to cover the risks associated with the German lender. UniCredit CEO Andrea Orcel said the likelihood of such a supervisory decision has risen.

Commerzbank’s management, led by Bettina Orlopp, opposes UniCredit’s earlier plans for significant job cuts and reductions in its foreign‑business operations. The second acceptance period for the takeover offer remains open until 3 July, and UniCredit’s involvement has been cited as the main driver behind the recent rise in Commerzbank’s share price.