Kawundo.com
By John O’Donnell, Emma-Victoria Farr and Tom Sims
FRANKFURT (Reuters) -Commerzbank is weighing the acquisition of a mid-sized German bank as part of its strategy to fend off a possible takeover by Italy’s UniCredit, three people with knowledge of the matter told Reuters.
The deliberations of an acquisition are at an early stage and possible targets could include Hamburg Commercial Bank (HCOB) or Oldenburgische Landesbank (OLB), said two of the people, who all spoke on condition of anonymity to describe private discussions.
Commerzbank’s considerations to buy a domestic rival are significant because the lender has been trying to devise a defence gameplan, so far revealing little other than saying it was pursuing a standalone strategy.
A possible acquisition has been discussed by Commerzbank management, the same two people said. It is unclear whether Commerzbank has reached out to the lenders.
Commerzbank, responding to a request for comment, said it was continuously monitoring opportunities for inorganic growth but declined to comment on potential targets.
OLB and HCOB declined to comment.
If Commerzbank were to pull off a deal before UniCredit has time to swoop, it could unravel the mooted cross-border merger, which would be Europe’s biggest since the crisis of 2008. Germany fears the Italian plan could cost jobs and influence.
It is unclear if Commerzbank has the time or investor support to embark on a domestic purchase but management is exploring all options, as it seeks to discourage UniCredit.
Commerzbank shares fell after the Reuters report, bringing the daily loss to as much as 4.1% at one point. The shares recovered to 15.69 euros as of 3.52 pm GMT, down 2.6% on the day.
A purchase could make Commerzbank a more complicated takeover for UniCredit as the German bank would already be busy integrating another lender. Tie-ups of this size are rare in Germany’s competitive banking landscape.
Commerzbank is “keeping powder dry for potential acquisitions,” Commerzbank’s CEO Bettina Orlopp said last week.
Orlopp has said she wasn’t going to engage in any “crazy” sell-downs or “stupid things” as it confronts UniCredit.
She has, for example, dismissed the option of selling its Polish mBank unit, which Commerzbank attempted in 2020, one other person said.
(Reporting by John O’Donnell, Emma Victoria Farr and Tom Sims. Editing by Anousha Sakoui and Elisa Martinuzzi.)
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