Germany rejects UniCredit's €39 billion bid for Commerzbank

The German government has formally rejected a 39 billion euro unsolicited takeover bid by Italy's UniCredit for Commerzbank, Germany's second-largest bank, marking a significant escalation in a contentious cross-border banking battle. The rejection, announced on June 16, 2026, underscores Berlin's determination to keep the lender independent, citing its critical role in financing the nation's small and medium-sized enterprises.

UniCredit launched its formal share-swap offer on May 18, proposing 0.485 of its own shares for each Commerzbank share, a valuation that implied only a modest premium. Commerzbank's management board swiftly rejected the bid, arguing it undervalued the bank and citing concerns over UniCredit's exposure to Russia. The German government, which holds a 12 percent stake in Commerzbank, had labeled the potential takeover "unacceptable" as early as March.

Despite the political and corporate opposition, UniCredit has aggressively built a substantial stake in its target. Through a campaign of share accumulation that began in September 2024, the Italian lender has amassed a holding of approximately 38 to 42 percent of Commerzbank's capital, making it the largest...