BERLIN (Reuters) -A merger of Italy’s Unicredit and Germany’s Commerzbank could add value for all stakeholders and create a much stronger competitor in the German banking market, Unicredit CEO Andrea Orcel told Handelsblatt in an interview published on Monday.
The Italian banking chief said a merger could “create a much stronger competitor on the German banking market”, better supporting retail customers and German medium-sized companies, known as the Mittelstand, that play an important role in the economy.
“For the moment, we are only a shareholder. But a merger of the two banks could lead to considerable added value for all stakeholders,” he said.
Orcel’s extensive comments to the German newspaper make a strong case for a potential merger.
But Orcel said the ball was now in Commerzbank’s court.
“The decision lies with Commerzbank’s stakeholders,” he said.
Commerzbank declined to comment on the comments.
Italy’s second-largest bank swooped to take a 9% stake in Commerzbank last week, catching German authorities off guard and getting a hostile reception from local management, who want to fend it off.
Asked when Unicredit would hold further talks with Commerzbank, Orcel told Handelsblatt said there was no firm timeline.
If “we come to the conclusion that a merger is best for both of us, that would be great, but … as a major shareholder I must first ensure that our investment develops well,” he said.
(Writing by Friederike Heine and Tom SimsEditing by Shri Navaratnam and Kim Coghill)
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