(Bloomberg) -- A senior German banker said there a several reasons why a takeover of Commerzbank AG by UniCredit SpA could be beneficial, demonstrating that the strong opposition to the potential deal by the country’s government isn’t a national consensus.
The acquisition would “make certain sense, objectively,” DZ Bank Chief Executive Officer Cornelius Riese said at a press event on Monday. The unlisted lender is one of Germany’s largest by balance sheet.
Germany is “overbanked” and its financial services sector needs consolidation, Riese said.
UniCredit last month built a major stake in Commerzbank and said a full takeover is an option. An acquisition would create Germany’s largest bank by domestic sales.
The country’s government, which still owns 12% in Commerzbank, has come out against any deal. Several labor unions have similarly expressed strong opposition.
Riese on Monday ruled out the possibility of DZ Bank buying a stake in Commerzbank to help the lender stay independent. “There is no white knight potential from our side,” he said.
There is “a certain melancholy that the banking consolidation in Germany wasn’t spearheaded by Deutsche Bank,” he also said. The country’s largest bank held formal takeover talks with Commerzbank in early 2019.
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