Is Unicredit about to kickstart a wave of European bank mergers?

Italian Un i-Credit faces the German government's fierce opposition in the speculation that it could start bidding to acquire a total of about 1 billion euros in Frankfurt for about 1 billion euros.

On September 11, Un i-Cledit announced that it will acquire 9 % of Komertz Bank, the second largest financial institution of Germany.

Half of the shares were purchased in the public market, and the other half was acquired by the German government.

Most people see this movement of Unicredit is the first step toward the acquisition.

On the first day of the week, Unicredit announced that it had raised its own shareholding ratio to 21 % on conditional approval. As a result, Unicredit will become the largest shareholder of Komertz Bank and overtake Berlin.

Mila n-based financial institutions have also acknowledged that they had applied to the Euro Central Bank for permission to raise the investment ratio to Komertz to less than 30 %. Beyond this standard, in accordance with the German law, an inseparable repayment will be made.

Germany still owns 12 % of Komertz Bank and has refused to acquire foreign companies.

Is this triggered and the waves of the lon g-awaited bank merger in the euro region?

The great dealmaker

Unicredit has been planned for several years to acquire Komertz bank shares (within 30 % of market capitalization).

In 2018, the BNP Pariva in France and the Dutch bank ING Group have been informal of Berlin from the German government.

Unicredit management in 2017, for the first time in 2017, asked the government to merge with a 15 4-year history.

However, the expectation that Andrea Orcell became a more bold situation with Ultra Olsel's CEO.

He is a 6 1-yea r-old, known for his no n-nonsense management style and once called the "Ronaldo in the Investment Bank", and has played a long and important role in integrating crowded European bank sector.

He joined Unicredit, the second largest bank of Italy in 2021, and supervised the company's profits and selling prices.

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The transfer of Orsel has become a surprise this month, but Komertz Bank is a logical acquisition target for Usuki Ledit, who has a large German branch of Hypofer Linz Bank.

Even after the German government withdraws plans to resale the remaining 12 % of the remaining 12 % of the promotion, Osel has used derivatives to acquire U-Sanikredit shares using derivatives.

Unicredit traders also agreed to his layout. Bank promotion increased by 8 or 7 % from the first stage of Osel. The promotion of Komertz banks is still 28 %.

On Wednesday, Osel said that Komertz's fractional acquisition was "investment, not more," and basically wants to start negotiating with Berlin.

Germany on the offensive

"Invisible attacks (and aggressive merger) are not considered good for banks, and as a result, the German government has only showed a clear position," said Prime Minister Olaf Cholz in Germany early this week. I mentioned.

It is not only Sorz that criticizes. Politicians in various directions in Germany have blamed Orkel for their brutal strategy.

Berlin continues to be the smallest shareholder of Komertz Bank and has the ability to hinder creditors. Authorized state unions are still likely to resist the acquisition of the Workspace planned by UNICTION.

At least the latest sentences on whether conspiracy will be carried out are left behind in 26 ECB politicians, not behind Berlin.

Some ECB executives have heard that they are enthusiastic about the possibility of merger.

According to Reuters, ECB's six chiefs support this partnership, believing that Berlin's opposition is contrary to the principle of European integration.

ECB is unlikely to reject an application for more than 10 % of UNICBEAIDT.

Director officials have been ordered to conclude within 60 days, but if they are difficult, there is an option to add another 30 days.

What next?

On Thursday, Bettina Aurop said that he would meet Unique Ledit on Friday and discuss all proposals on Friday for the first time as a new CEO of Komertz.

While other major banks such as BNP, Ing, and Santandale in Spain are paying attention, other Komertz banks are considered to be Germany.

The German Bank of German Bank's Christian Swing, CEO, has been supporting M & Amp; a beyond the border, ignoring the possibility of merger with internal rivals for many years. Ta.

Germany is likely to be a single customer who operates a German business on the same size as Un i-Credit, and Berlin will be able to approve this position, given that Komertz Bank is Russian capital.

However, it would be difficult to make a proposal to a 21 % decimal opponent.

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The top of the other bank agencies talked about the wide concept of Orsel's sel f-help efforts and the Pa n-European integration.

BNP's Economic Director of Lars Machenil said on Thursday that it would support integration of fragmented departments to compete with the scale of Wall Street.

Onul Gunk, the secon d-largest BBVA Bank, also supports integrated ideas.

On Thursday, he told Reuters that if politicians began to hinder the merger of banks, Europe was at risk of abandoning universal rivals.

Gunk itself began aggressively proposals to absorb sabaldell for 12, £ 120 million (£ 10, 30 million), and then a proposal to acquire all promotions as a rival lender. I refused.

The Spanish government unable to stop the possibility of absorption and openly opposed the BBVA creep. Sabadel has a TSB English Bank.

"We will blur a stunning opportunity to create a certain number of European banks, which have the reach needed to invest in technology," said Gen. < SPAN> BNP's Economic Director Lars Machenil said on Thursday to integrate fragmented divisions to compete with the scale of Wall Street.