BERLIN (dpa-AFX) - Italian banking group UniCredit SpA (UCG, UNCFF.PK) announced Friday that it has received the European Central Bank or ECB authorization to acquire a direct stake in Germany's Commerzbank AG (CRZBY.PK) of up to 29.9%.
UniCredit said there are still many factors that will determine any further steps and their associated timeline. Several further approvals are still required before the around 18.5% shares held through derivatives can be converted into physical shares, including from the Germany Federal Cartel Office.
The company said its original timeline for deciding on whether to proceed or not with a potential combination is now likely to extend well beyond the end of 2025.
Meanwhile, Commerzbank reportedly said that the ECB's authorization for UniCredit to increase its stake in the German bank doens't change fundamental situation, and that it remains focused on its strategy.
UniCredit, which has been eyeing to acquire Commerzbank, in September last year acquired an equity stake equal to around 9 percent, in which a 4.49 percent stake was acquired from the German Government.
In late September, the company bought around 11.5 percent shares, totaling its stake in the German banking major to around 21 percent. With that, UniCredit became the largest shareholder of Commerzbank, ahead of the German government.
In December last year, the company raised its stake in the German lending major to around 28 percent. The company then said it entered into new financial instruments relating to Commerzbank shares, in line with its previously stated ambition to reach a 29.9 percent stake.
In its latest statement, the Italian bank said that it is awaiting the opportunity to initiate a constructive dialogue with the new German government once formed.
The firm said, 'As shareholder, we are pleased that our investment has driven some positive change at Commerzbank, which, together with the recent more optimistic view on German macro, has driven a substantial increase in the bank share price. However, only significant time will reveal if the plan is executable and hence determine whether such price appreciation is justified and sustainable.'
UniCredit further said that its focus remains on executing on the second phase of its UniCredit Unlocked strategy.
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