UniCredit's CEO Steps Up Push for Revamp at Commerzbank — Update

By Elena Vardon

UniCredit mapped out a plan to transform takeover target Commerzbank, marking Chief Executive Andrea Orcel's latest move to broker a deal and extract value from its German peer.

The Italian bank, which is Commerzbank's largest shareholder, said the Frankfurt-based group's current trajectory is "a story of operating underperformance," and that financial tailwinds and a higher-interest rate environment have overvalued the stock relative to fundamentals.

"Commerzbank is insufficiently prepared for future challenges and is overly focused on short-term delivery," UniCredit said.

"UniCredit believes that Commerzbank should reposition to be future-ready by accelerating sustainable growth and focusing on investing and transforming," it added.

A Commerzbank spokesperson referred to past statements defending its independent strategy when approached for comment. The German group, which has stated it doesn't see a basis for a deal after recent talks, is set to present updated financial targets on May 8.

According to UniCredit, Commerzbank's international expansion has starved its domestic franchise, making the lender structurally inefficient and vulnerable.

"UniCredit sees significant upside and risk-reduction potential for Commerzbank beyond its current Momentum strategy to create additional value," it said Monday.

The bank outlined a scenario in which Commerzbank implements a strategy requiring an investment of around 1.7 billion euros ($2 billion) in technology and re-skilling staff. This would lift Commerzbank's 2028 net profit to 5.1 billion euros, representing a 600 million-euro bump over current consensus estimates provided by the German bank.

UniCredit is also pitching a full combination as the solution to its problems. This involves doubling down on core German and Polish markets and scaling back Commerzbank's international footprint. Integrated with UniCredit's German arm, HypoVereinsbank, the combined entity could generate 21 billion euros in net profit by 2030 and achieve a return on tangible equity north of 25%.

UniCredit has been circling its rival since the fall of 2024, when it began building a stake. The approach was rebuffed by Commerzbank's leaders and triggered opposition from unions and the German government, its second-largest shareholder.

In March, the Italian group increased the pressure by launching a takeover bid to break the stalemate between the two parties and bring management to the negotiating table. The deal valued Commerzbank at around $40 billion. UniCredit aims to lift its stake just above the key 30% threshold under German takeover law.

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

April 20, 2026 08:02 ET (12:02 GMT)