Commerzbank warns of risks if taken over by Unicredit

Commerzbank boss Bettina Orlopp sees major risks in a takeover by the major Italian bank Unicredit. The integration of two large banks is extremely difficult, Orlopp told the “Handelsblatt”. After taking over Dresdner Bank in 2008, Commerzbank spent several years merging the systems of both banks. “We cannot afford such a standstill in today’s world, which is characterized by so many technological upheavals and very intense competition.”

Unicredit made a big investment in Commerzbank in September and wants to expand its share. German medium-sized companies and corporations would receive fewer loans if Commerzbank were taken over by the Italians, said Orlopp. “When it comes to corporate customers, there is a lot of overlap between the German Unicredit subsidiary HVB and us. In the event of a merger, the credit exposures of some companies would have to be reduced in order to prevent cluster risks.”

In addition, Commerzbank’s rating would deteriorate, probably even significantly, Orlopp pointed out. “We would lose customers who have certain rating requirements and only do business with banks with very good credit ratings.” In addition, refinancing costs would increase. Commerzbank has an “A-” rating from the rating agency S&P, while Unicredit is three levels lower at “BBB”.