LONDON, Feb 26 (Reuters) – The European Central Bank (ECB) is likely to authorize Italy’s UniCredit to increase its stake in German competitor Commerzbank, according to a source familiar with the situation. This move could potentially lead to the largest cross-border banking merger in Europe since the global financial crisis.
ECB staff are expected to finalize their review of UniCredit’s acquisition of a 29.9% stake in Commerzbank by early March, paving the way for the regulator’s Supervisory Board to approve the deal later in the same month, the source revealed.
The most recent assessment by ECB supervisory experts, which considered various scenarios to evaluate the banks’ financial stability, was favorable, the source added.
An ECB spokesperson declined to comment on the matter.
UniCredit’s CEO, Andrea Orcel, known for his deal-making prowess, surprised Germany’s business and political circles by acquiring Commerzbank shares in September. He has since increased his holdings despite significant German opposition, while advocating for a complete merger.
ECB approval for UniCredit to hold just under 30% of Commerzbank would remove a major regulatory obstacle.
