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Germany Rejects UniCredit’s Commerzbank Bid, Citing Low Valuation

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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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Intesa Launches €30.6 Billion Bid for Monte dei Paschi

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Italy’s largest lender, Intesa Sanpaolo, has launched an unsolicited €30.6 billion ($35 billion) cash-and-share offer to acquire rival bank Monte dei Paschi di Siena (MPS), marking a new phase of consolidation in the country’s banking sector. The proposed deal offers MPS shareholders a 12.5% premium over the bank’s closing share price on Friday.

To address potential competition concerns, Intesa said it has reached an agreement with insurer Unipol to divest 635 MPS branches and the historic MPS brand if the takeover succeeds. The move mirrors a strategy Intesa used during its acquisition of UBI Banca in 2020, which helped it secure a dominant position in the Italian banking market.

If completed, the merger would create the eurozone’s second-largest banking group by market value after Santander, with a combined capitalization of €126 billion. The transaction would also intensify competition for key financial assets in Italy, including insurer Generali, while accelerating the ongoing consolidation trend among the country’s leading banks.

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