By Elena Vardon
UniCredit is set to outline a plan to transform Commerzbank and extract value from its German peer in the latest move from Chief Executive Andrea Orcel to push through a deal.
The Italian bank, which is Commerzbank's largest shareholder, on Monday published a presentation outlining the details of its "approach to value creation." It described the bank's story as one of operating underperformance, noting that it is overvalued relative to fundamentals and inadequately prepared for future challenges.
UniCredit has been circling the Frankfurt-based group since the fall of 2024, when it started building a stake in the lender and pushing for a deeper tie-up. Orcel's move was rebuffed by the target and triggered opposition from unions and from the German government, Commerzbank's second largest shareholder.
In March, the Italian group ratcheted up the pressure by launching a takeover bid to break the stalemate between the two parties and bring management to the negotiating table for a potential combination. UniCredit said it wasn't seeking full control.
Commerzbank, which has fiercely defended its independent strategy, has said that it doesn't see a basis for a deal after recent interactions.
UniCredit on Monday argued that the strategy masks deep structural weaknesses with risky non-core bets, leaving the German lender inefficient and vulnerable to competitors, and at risk of future restructuring.
"UniCredit sees significant upside and risk reduction potential for Commerzbank beyond its current Momentum strategy to create additional value," it said.
The Italian group, which owns HypoVereinsbank in Germany, is pitching a combination as the solution to double down on its core German and Polish markets and drive profitability gains. By 2030, UniCredit estimates the tie-up would generate 45 billion euros ($52.94 billion) in net revenue and 21 billion euros in net profit, achieving a return on tangible equity north of 25%.
A Commerzbank spokesperson referred to past statements about its standalone strategy when approached for comment.
Write to Elena Vardon at elena.vardon@wsj.com
(END) Dow Jones Newswires
April 20, 2026 03:12 ET (07:12 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
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