UniCredit is expediting its efforts to gain effective control of Commerzbank, with a new target to replace all ten shareholder representatives on Commerzbank's 20-member supervisory board by February 2025, or even January in a best-case scenario. This timeline is significantly faster than UniCredit's prior indication of control by the second quarter of next year, though the process could still extend to Commerzbank's annual meeting in May if the German bank attempts to delay.
Once control is secured, UniCredit plans a comprehensive restructuring of Commerzbank. This includes unwinding approximately €20 billion of non-core corporate lending outside its primary German and Polish markets, implementing cost-cutting measures targeting external consultants, marketing, and executive perks, and reinvesting savings into Commerzbank's core businesses in Germany and Poland. UniCredit CEO Andrea Orcel is also preparing to remove Commerzbank CEO Bettina Orlopp and has resisted Berlin's demand to retain its two supervisory board seats, despite the German government holding nearly a 13% stake in Commerzbank.
Regulatory approvals from the European Central Bank, European Commission, and Poland's financial regulator are still pending, but nearing completion. Berlin, initially resistant to the €45 billion deal, has softened its stance, now setting conditions such as maintaining Commerzbank's Frankfurt headquarters and protecting the interests of its 40,000 employees. UniCredit previously indicated around 7,000 job cuts, disputing union claims of up to 15,000. The deal, which would create a bank with over €1.3 trillion in assets, is seen as a test for cross-border banking consolidation in Europe.
