Germany’s finance ministry, holding almost 13% of Commerzbank, rebuffed UniCredit’s multibillion‑euro offer on Tuesday, calling the Italian lender’s tactics aggressive. The government, the bank’s second‑largest shareholder, said the proposal failed to deliver a sufficient premium, making it financially untenable. Officials reiterated support for Commerzbank’s independent strategy. The ministry also warned that any future overture must respect shareholder value.

UniCredit launched the all‑stock bid in March, valuing the target at €24 billion ($27.8 billion). Since then the offer’s market value has swung, and the deadline to close the transaction is Tuesday unless an extension is granted. The Italian bank reported that acceptances cover 11.91% of Commerzbank, adding to its direct 26.8% stake and contract holdings. The bid also triggers regulatory scrutiny under EU competition rules.

The rebuff underscores Berlin’s resolve to keep a domestic champion free from foreign control, a stance echoed by Commerzbank’s board and labour unions. Investors will watch the share price significantly for volatility as the hostile bid stalls, while UniCredit must decide whether to sweeten its proposal or abandon the pursuit. The standoff leaves Germany’s banking sector in limbo.