UniCredit Lifts Stake in Commerzbank to 26%, Eyes 29% Voting Power

Italy’s UniCredit has strengthened its position in Germany’s Commerzbank, increasing its voting stake to approximately 26% through the conversion of synthetic holdings into physical shares. This record move further cements UniCredit’s status as Commerzbank’s largest shareholder. The bank indicated that continued conversion of remaining derivatives would boost its voting rights to about 29% in due course Reuters+1.

Germany’s government has expressed strong disapproval of the move, describing UniCredit’s actions as “uncoordinated and unfriendly” and reaffirming that Berlin will not sell its own holdingsReuters.

UniCredit secured clearance from the European Central Bank earlier this year to hold up to 29.9% of Commerzbank voting rights and subsequently expanded its direct equity position to 20% in July through an initial conversion. The latest conversion continues this strategy of shifting synthetic exposure into actual shareholdingsReuters.

Financially, UniCredit maintains that the investment has delivered substantial value for shareholders, with an expected return of around 20%. However, rising share prices and adjustments to its hedging arrangements have increased the Common Equity Tier 1 (CET1) capital impact from 110 basis points to approximately 145 bpsReuters.