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 joined 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 large 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, said Orlopp. “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.
New major shareholder
Commerzbank
Z+ (subscription content); Commerzbank and UniCredit: On the hook of a trickster
Z+ (subscription content); Financial crisis 2008: Federal government wants to sell shares in Commerzbank
Z+ (subscription content); Bank stocks: Don’t grab the falling knife
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.”
