ECB clears UniCredit to increase its holding in Commerzbank

The European Central Bank's banking supervisor has granted UniCredit permission to surpass the earlier threshold on its Commerzbank holding and to increase its equity position without a ceiling. UniCredit had presented an offer in May to acquire all Commerzbank shares, securing a substantial portion through a share-exchange scheme. The ECB's decision removes the final regulatory hurdle, enabling UniCredit to convert the exchange-offer shares into direct ownership and to buy further shares openly.

The bank expects the remaining supervisory procedures and conditions for finalising the transaction to be resolved by year-end, after which it will assume control of Commerzbank. The German government, which holds a stake in Commerzbank, has expressed a desire to limit job cuts and keep the bank headquartered in Frankfurt. Discussions are ongoing about a possible merger between the two institutions.