UniCredit expects to take control of German rival Commerzbank by month-end, accelerating plans to merge the German lender with its subsidiary HVB. The Milan-based lender plans to establish a new governance structure and launch a restructuring programme by Q1 2027. The European Central Bank approved the deal last month, deemed Europe's biggest banking takeover since the financial crisis.
UniCredit began building a stake two years ago but faced opposition from Berlin and Commerzbank's management. The German government relaxed its stance after UniCredit secured just under 50 percent of shares. The Italian bank expects the acquisition to increase earnings per share above €10 by 2028, due to pay a €4.5bn interim dividend, and raised its 2026 net profit target to above €11.5bn before extraordinary charges.
On Monday, UniCredit reported a 24 percent year-on-year increase in third-quarter net profit to €3.3bn following a 12 percent rise in revenues to €6.9bn and continued cost reductions. Chief Executive Andrea Orcel stated the bank delivered its best quarter ever, combining sustainable profitable growth with structural cost efficiency. UniCredit has fundamentally transformed operations through disciplined capital allocation and a strong balance sheet.
Source: Financial Times Companies · Summarized by HeadlinesBriefing