Germany has formally rejected UniCredit's unsolicited €39 billion takeover bid for Commerzbank, affirming the lender's independence as a national economic priority.
The all-share proposal, which offered a mere 4% premium, was deemed insufficient by Commerzbank's board. The board also cited material risks tied to UniCredit's Russian exposure.
Chancellor Friedrich Merz's administration had already branded the move unacceptable, citing Commerzbank's critical role as the primary financier for Germany's Mittelstand.
Despite the rejection, UniCredit had secured a 34.4% stake by early June. However, the tender offer saw acceptance levels languish near 11%, prompting formal complaints from Commerzbank to BaFin regarding abnormal trading activity.
For investors, the stalemate poses a threat. If UniCredit begins unwinding its dominant stake, it could trigger significant downward pressure on Commerzbank's share price.