UniCredit gets ECB approval to raise Commerzbank stake

The European Central Bank has given the green light for Italian bank UniCredit to raise its stake in German peer Commerzbank to up to 29.9%.

However, UniCredit said that further decisions on whether or not to proceed with a full takeover of Commerzbank are now likely to be delayed until well beyond 2025.

The bank said that antitrust issues, discussions with key stakeholders and other considerations are further extending the timeline.

Meanwhile, further approvals are still required before the 18.5% stake held by UniCredit through derivatives can be converted into physical shares.

UniCredit has been building its shareholding in Commerzbank over the past year and will now hold just below the 30% threshold which would require a mandatory takeover offer.

"As shareholder, we are pleased that our investment has driven some positive change at Commerzbank, which, together with the recent more optimistic view on German macro, has driven a substantial increase in the bank share price," UniCredit said in a statement on Friday.

"However, only significant time will reveal if the plan is executable and hence determine whether such price appreciation is justified and sustainable."

UniCredit's share price was up 1.8% at €51.96 by 1222 in Milan, while Commerzbank gained 3.5% to €23.99 in Frankfurt.