UniCredit chief says Commerzbank acquisition could come in fourth quarter

UniCredit Chief Executive Andrea Orcel said the Italian bank could move to acquire Commerzbank in the fourth quarter after increasing its holding in the German lender to 48%, according to CNBC. The comments came as UniCredit raised its full-year profit target after what Orcel described to CNBC as the strongest second-quarter and first-half performance in the bank’s history.

Orcel told CNBC’s “Europe Early Edition” that a deal could happen “potentially” in the fourth quarter, though he added it could come later. He said UniCredit would not wait for Commerzbank’s annual general meeting in May before acting.

“That would mark the moment when we go in,” Orcel told CNBC.

UniCredit has built a large position in Commerzbank, bringing it close to full control of one of Germany’s major lenders. CNBC reported that the 48% stake gives UniCredit de facto control, although Orcel said the two institutions remain “very different” and that several areas still need to be aligned before any full combination could proceed.

Stake shifts from investment to strategic transaction

UniCredit said its position in Commerzbank had changed from “an attractive financial investment” into a “strategic transaction of substantial industrial value creation.” The bank did not, in the CNBC report, set out further details on the steps needed to complete an acquisition or any formal terms.

A full takeover would turn a minority position into control of the target company. In practical terms, that would require UniCredit to move beyond its current shareholding and secure the corporate, financial and operational conditions needed to integrate Commerzbank. Orcel’s remarks indicate that UniCredit sees the fourth quarter as a possible point for such a move, while leaving the timing open.

The potential transaction would bring together an Italian banking group with a major German lender. Orcel’s comments suggest UniCredit is assessing not only the financial case but also the industrial fit, including the alignment he said would be needed before a merger.

Profit target lifted after quarterly results

UniCredit also reported second-quarter earnings on Thursday. CNBC said the bank’s net profit fell 13% to 2.9 billion euros, equivalent to $3.3 billion, in the quarter.

Despite that decline in quarterly net profit, Orcel told CNBC that UniCredit had delivered its best second quarter and first half. The bank lifted its full-year net profit target to more than 11 billion euros, according to CNBC.

The higher target gives UniCredit additional financial context for any potential move on Commerzbank. Orcel framed the bank as operating from a position of strength, while also making clear that a full merger would depend on further alignment between the two lenders.

CNBC described the story as developing. No additional transaction terms, timetable beyond Orcel’s fourth-quarter comment, or response from Commerzbank were included in the report.

This story draws on original reporting from CNBC.