By Tom Sims
FRANKFURT - Commerzbank is set to appoint CFO Bettina Orlopp to lead negotiations with UniCredit regarding a possible takeover, sources familiar with the matter revealed. This move comes as the Italian bank explores the option of acquiring its German counterpart.
Commerzbank has a tumultuous history with mergers and acquisitions, experiencing various significant events over the years:
- 1870-1970s: Founded in Hamburg, later moved to Berlin, and established its headquarters in Frankfurt in 1970.
- 1970s: Expanded to London, New York, and other European capitals.
- 2008: Acquired Dresdner Bank from Allianz in a $14.5 billion deal and sought government assistance during the global financial crisis.
- 2009: Received a capital injection from the German government in exchange for a stake.
- 2011-2013: Faced challenges during the European debt crisis.
- 2016: Initiated a multi-year restructuring plan.
- 2017: U.S. investor Cerberus acquired a stake in the bank.
UniCredit has expressed interest in merging with Commerzbank, potentially creating one of Europe's largest banks. However, other entities like BNP Paribas have downplayed rumors of a similar partnership.
In 2019, merger talks between Deutsche Bank and Commerzbank fell through, leading to significant changes within Commerzbank's leadership and strategy.
Recent developments include Commerzbank's return to profitability, its CEO's announcement of job cuts and branch closures, and UniCredit's acquisition of a 9% stake in the bank.
As of now, Commerzbank's management is focused on maintaining independence and exploring strategic options to ensure its stability and growth in the future.
Analysis:
Commerzbank's potential merger with UniCredit could have far-reaching implications for the European banking sector. The appointment of CFO Bettina Orlopp to lead negotiations signifies a crucial step in the process of a possible takeover. Investors should closely monitor developments in this situation, as they could impact the financial landscape and market dynamics in the region.