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Commerzbank to Cut 3,000 Jobs as It Resists UniCredit Takeover Push

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Commerzbank announced plans to cut 3,000 jobs and raise its long-term profit targets as it fights to remain independent amid a takeover attempt by Italy’s UniCredit. The German bank said the restructuring would strengthen revenue and profitability by 2028, while criticizing UniCredit’s €37 billion takeover proposal as unclear and risky. Commerzbank also expects around €450 million in restructuring costs tied to the layoffs.

The takeover battle has become a major issue in Germany’s financial and political circles, with UniCredit CEO Andrea Orcel pushing for a major cross-border European banking merger. UniCredit now holds just under a 30% stake in Commerzbank and argues that larger European banks are needed to compete globally. However, Commerzbank insists it can perform better independently and unveiled stronger targets, including €15 billion in revenue and €4.6 billion profit by 2028.

Germany’s government has openly opposed the takeover effort, with Chancellor Friedrich Merz criticizing hostile banking acquisitions and warning they damage trust. Germany still owns a 12% stake in Commerzbank from a past financial crisis bailout, and some politicians are urging Berlin to increase its holding to block UniCredit’s advances. The announcement came as Commerzbank reported a 9.4% rise in first-quarter net profit, beating analyst expectations.

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Pernod Ricard and Brown-Forman Explore Merger Amid Industry Slump

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Global spirits giant Pernod Ricard and American whiskey producer Brown-Forman, best known for Jack Daniel’s, have confirmed they are in discussions over a potential merger. The move would combine the world’s second-largest spirits company with a leading U.S. whiskey maker, as both firms navigate a prolonged slowdown in alcohol sales. While Brown-Forman’s shares rose sharply following the news, Pernod Ricard’s stock declined, reflecting mixed investor sentiment about the deal.

The spirits industry has been facing declining demand due to changing consumer habits, rising health consciousness, and pricing pressures from tariffs. Both companies have already initiated restructuring efforts, including cost-cutting measures and job reductions. Analysts note that a merger could deliver operational efficiencies and cost savings, especially given overlapping markets in the U.S. and Europe, though it may not fully address long-term growth challenges.

The proposed deal is expected to include a significant stock component, allowing founding families to retain influence in the combined entity. While Brown-Forman’s controlling shareholders have historically resisted such moves, current market conditions may make them more open to consolidation. The companies stated they will not provide further updates until negotiations are finalized or discontinued.

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