Berlin weighs bigger KfW stake in Commerzbank to fend off UniCredit bid, sources say
As UniCredit presses a 37 billion euro cross-border takeover attempt for Commerzbank, some members of Germany’s government are examining a last-ditch option to deter the Italian bank: using state lender KfW to increase Berlin’s stake in Commerzbank, according to people involved in the matter.
Germany already owns 12% of Commerzbank following a financial-crisis bailout nearly two decades ago. Two people with direct knowledge said officials are considering whether KfW could buy additional shares, potentially creating a large enough bloc to hinder a full takeover.
The move would face hurdles, including the need to raise several billion euros, but supporters argue it could be justified by Commerzbank’s role financing the Mittelstand firms that underpin Europe’s largest economy. “A potential KfW stake should certainly be considered,” said Armand Zorn, a prominent lawmaker from the Social Democratic Party (SPD), which currently oversees the finance ministry.
He called it a last resort if other options fail and said the impact would go far beyond symbolism. Zorn also urged the government to keep signaling that a hostile takeover is not in the interests of Germany’s financial centre, noting Commerzbank’s importance for the country’s economic resilience.
KfW, the finance ministry and Commerzbank declined to comment. The idea lands amid tight public finances and uncertain political backing. It is unclear whether the pro-business Christian Democrats, who govern in an uneasy coalition with the more left-leaning SPD, would support such an intervention.
The struggle over Commerzbank has become a test of the government’s resolve after repeated warnings to UniCredit. Doing nothing could further dent Berlin’s standing, following infighting over economic reforms as growth has stalled. The stakes extend beyond one bank.
Germany faces tariffs on trade with the United States, its biggest export market, while layoffs have accelerated and China has shifted from low-cost supplier to a rival in key industries. The ownership fight sharpened after UniCredit CEO Andrea Orcel on Tuesday formally launched the bid at what was described as a lowball price.
Orcel has pursued Commerzbank since 2024, amassing a nearly 30% stake, while Chancellor Friedrich Merz and Commerzbank CEO Bettina Orlopp have raised alarms. He argues Commerzbank has underperformed and says Europe would benefit from larger banks in an era of geopolitical turbulence.
Commerzbank will publish an updated strategy on Friday that managers hope will persuade investors of the value of independence. The plan will include cost cuts that will likely involve staff reductions, two other people said, marking a third round of cuts this decade.
Last month, Orcel told investors that Commerzbank’s current trajectory puts its medium-term survival at risk and launched a negative social media ad campaign. Germany’s financial regulator responded by telling UniCredit to drop