Investing.com – The chances of a friendly merger between Commerzbank (ETR:) and UniCredit look slim, after the Italian bank's unexpected acquisition of a major stake in the German lender.
This was stated by Jens Weidmann, Chairman of the Supervisory Board of Commerzbank. In an interview published by Handelsblatt newspaper on Monday.
Weidmann expressed doubts about the possibility of creating lasting value through a hostile takeover of the banking sector. He stressed the importance of management engaging in trust-based discussions and developing a common understanding during mergers.
According to Weidman, UniCredit bypassed this approach and surprised them with its entry, which he considered inappropriate.
UniCredit currently owns approximately 28% of Commerzbank shares. The Italian bank directly owns about 9.5% and has gained access to an additional 18.5% via financial instruments.
Weidmann suggested that for Germany's financial sovereignty, it would be beneficial to have two large, independent private banks, Deutsche Bank (ETR:) and Commerzbank.
He pointed to the examples of HypoVereinsbank and Bank Austria, which UniCredit acquired in 2005, as illustrations of how banks evolve after losing their independence.
Weidmann expressed concerns that Commerzbank's presence in Germany could diminish and that Frankfurt's attractiveness as a financial center could suffer if the bank loses its independence.
He added that such a development may force many customers, especially from the small and medium enterprise sector, to reconsider their banking relationships.
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