Germany has formally rejected UniCredit’s takeover offer for Commerzbank, arguing that the bid undervalues the German lender and fails to provide an adequate premium for shareholders. The German government, which still owns a 12% stake in Commerzbank following the 2008 financial crisis, reaffirmed its opposition to the proposed merger and expressed concerns over UniCredit’s aggressive acquisition strategy.

Berlin also emphasized its support for Commerzbank’s independent growth strategy, highlighting the bank’s crucial role in financing Germany’s Mittelstand—its network of small and medium-sized businesses. Officials stressed that Commerzbank remains an important institution within Frankfurt’s financial sector and that its continued stability and independence are in the country’s economic interest.

Meanwhile, Frankfurt prosecutors have opened a preliminary investigation into possible market manipulation linked to the takeover bid after receiving a complaint from Commerzbank’s workers’ council. Although UniCredit said such a review is standard procedure, the development adds another layer of uncertainty to the ongoing battle for control of one of Germany’s most significant banks.

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