The German government has sold a significant portion of its Commerzbank shares to Italian banking giant UniCredit. This sale marks a major shift in the ownership structure of one of Germany’s largest banks.
Italian banking powerhouse UniCredit has secured a 4.49% stake in Commerzbank, purchasing the entire share package offered by the German government in its recently announced partial divestment. The sale was completed at a premium, with UniCredit willing to pay more than the shares’ closing price on Tuesday evening.
According to the German Finance Agency, UniCredit’s bid was allocated the entire offering due to a “significant overbidding” of all other offers. The allocation price was set at €13.20 per share, a 60 cent premium over Tuesday’s closing price. This is unusual for such placements, which typically see discounts. The sale netted the German government €702 million.
Implications for Commerzbank’s ownership structure
Following the sale of just over 53 million shares, the German government’s stake in Commerzbank has decreased to 12%. Despite this reduction, the state remains the largest shareholder in the bank. UniCredit now becomes the third-largest shareholder, while US asset manager BlackRock holds the second-largest stake at around 7%, spread across various funds without strategic interest.
This deal represents a significant development in the European banking landscape, potentially signaling increased Italian influence in the German financial sector. It also demonstrates the German government’s ongoing efforts to reduce its involvement in the banking industry, a legacy of interventions during the 2008 financial crisis.
