UniCredit's €35B shock bid for Commerzbank sparks German market turmoil

UniCredit has launched a surprise takeover bid for Commerzbank, sending shockwaves through German markets. The Italian bank's offer, valued at nearly €35 billion, pushed Commerzbank's shares up by almost 10% on Monday. The move has sparked strong opposition from the German government, unions, and employee representatives.

UniCredit formally announced a voluntary public offer for all outstanding Commerzbank shares. The deal proposes exchanging each Commerzbank share for 0.485 new UniCredit shares, valuing them at €30.80 apiece. Analysts see the bid as a strategic push by UniCredit CEO Andrea Orcel to force Commerzbank CEO Bettina Orlopp into negotiations.

The German government has a history of blocking foreign takeovers of major banks. In 2007, a similar attempt by UniCredit to merge with Commerzbank failed after Chancellor Angela Merkel and Finance Minister Peer Steinbrück stressed national interests. Regulators, including the BaFin and EU Commission, imposed strict conditions that ultimately derailed the deal. This time, resistance is already building. The Verdi union and Commerzbank's works council have condemned the takeover. Meanwhile, the DAX index remains under pressure, trading 4.5% below its 50-day moving average. Traders are watching the 22,900-point level as critical support, with a recovery above 24,000 points needed for a sustained improvement. Elsewhere in the market, oil price rises weighed on cyclical stocks and travel companies. However, positive trial data lifted Bayer, while Siemens Energy also posted gains.

UniCredit's formal takeover offer is expected in May, leaving the DAX's short-term direction tied to how Commerzbank responds. The bid has reignited debates over foreign control of German banks, with political and union opposition likely to shape the outcome. Commerzbank's share surge reflects investor bets on a potential deal, but regulatory hurdles remain a major obstacle.