Commerzbank Launches €1.2 Billion Buyback Amid UniCredit Takeover Bid
Commerzbank announced a €1.2 billion share buyback to assert autonomy as UniCredit seeks to acquire nearly 50% of the German lender.
Commerzbank AG announced a share buyback program of up to €1.2 billion following a second quarter where net income reached €898 million. Chief Executive Officer Bettina Orlopp initiated the move to demonstrate the bank's profitability and autonomy while resisting a takeover attempt by UniCredit SpA.
UniCredit, led by CEO Andrea Orcel, is attempting to expand its stake in the German lender to nearly 50%. Orcel intends to implement deep structural changes once he gains control. Orlopp has contested this, stating that UniCredit cannot unilaterally decide on fundamental structural measures even if it holds a majority at the next Annual General Meeting.
The two CEOs are expected to discuss the bank's future via video call. Meanwhile, the German regulator BaFin confirmed that UniCredit's application to exceed a 30% stake in Commerzbank is complete. The application is now undergoing a review by the European Central Bank, which may take up to 60 working days.
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