UniCredit Commerzbank takeover and 2027 strategy, Digi Mart USA News: After a long and publicly contested battle, UniCredit appears to be on the home stretch in its takeover of Commerzbank. The Italian banking group has made clear that it is eager to move ahead with integrating Commerzbank and a possible merger with its German subsidiary HypoVereinsbank.
“The next steps are clear,” UniCredit wrote in its third-quarter results statement.
UniCredit said that if the final approvals for raising its stake arrive as expected at the end of November, it will convene an extraordinary general meeting to elect new supervisory board members. The bank added that it expects to assume control of Commerzbank in the first quarter of 2027 and begin implementing its “Unlocked” strategy.
According to the company, the move carries only limited risks, since UniCredit has already gained experience restructuring HypoVereinsbank.
A presentation indicated that a merger of Commerzbank with HypoVereinsbank, UniCredit’s Munich-based subsidiary, could happen earlier than previously expected. The company said such a step would “create significant additional value.” In April, UniCredit Chief Executive Andrea Orcel had indicated that this step would come after 2028.
UniCredit secured a 49 percent stake in Commerzbank through its takeover offer. If HypoVereinsbank were folded into Commerzbank, the bank’s shareholding could rise significantly.
Even with its current stake, UniCredit could raise earnings per share to 10 euros by 2028, with more than 8 euros of that intended for distribution to shareholders. Commerzbank shareholders, however, should expect lower dividends in the near term, as the new strategy involves extraordinary provisions, charges and investments.
The Frankfurt-based lender had recently paid out nearly all of its profits to shareholders.
In the third quarter, UniCredit’s profit rose 24 percent to 3.3 billion euros, significantly more than analysts had expected. Orcel described it as the “best quarter of all time and the best in the entire industry.” For the full year, Italy’s second-largest bank now expects a profit before special costs of well above the previously forecast 11.5 billion euros.
