Unicredit's Acquisition of Commerzbank Approved by German Antitrust Authority

The German Federal Cartel Office has approved Unicredit's acquisition of a 29.99% stake in Commerzbank, marking a significant step in Unicredit's strategy to strengthen its position in Germany's banking sector. Andreas Mundt, the head of the Cartel Office, stated that the minority stake acquisition would enhance Unicredit's market position in both retail and corporate banking. However, he noted that significant competitors remain in the market, prompting the approval.

Unicredit first submitted its application for the share acquisition at the end of February, with the European Central Bank already expressing no objections to the increase in shares. Following a partial exit of the German government from its stake in Commerzbank last September, Unicredit seized the opportunity to significantly increase its holdings in Germany's second-largest private bank. Currently, Unicredit holds approximately 28% of Commerzbank's shares through direct ownership and financial instruments.

Andrea Orcel, the CEO of Unicredit, has been actively pursuing a full takeover of Commerzbank. Should Unicredit surpass a 30% ownership threshold, it would necessitate a formal purchase offer. However, Unicredit has indicated that a decision regarding a potential merger will likely not occur within this year, as they plan to engage further discussions with the new German government. The federal government still retains a stake of over 12% in Commerzbank, and various stakeholders, including government officials and labor representatives, have expressed opposition to Unicredit's plans. In contrast, Orcel continues to advocate for the benefits of a merger.

Meanwhile, Commerzbank is focusing on maintaining its independence, aiming to attract shareholder confidence through increased dividends and ambitious profitability targets. The bank, which plays a crucial role for many German SMEs, has also announced a reduction of approximately 3,900 full-time positions despite reporting record profits.

In related market developments, the Swiss Market Index (SMI) opened the week on a positive note, rising by 1.7% to reach 11,433 points on April 14. This increase comes amid ongoing uncertainty surrounding U.S. economic policies, particularly regarding President Donald Trump's administration. The temporary suspension of special tariffs on electronic goods has contributed to this market uplift. Notable performers included Logitech, whose shares surged by 7.1%, and AMS Osram, which rose by 6.5%. Other significant gainers included UBS, Adecco, Sika, ABB, and Holcim, with increases ranging between 2.1% and 3.2%.

In another significant development, Scania, a subsidiary of Volkswagen, has finalized the acquisition of the Polish operations of Northvolt, a Swedish battery manufacturer that recently filed for insolvency. Scania has reached an agreement with the insolvency administrator to acquire the production facility in Gdansk and the development center in Stockholm. This acquisition will enable Scania to enhance its battery production capabilities, which are vital for electric vehicle manufacturing.

Additionally, Swiss pharmaceutical giant Novartis has announced plans to invest $23 billion in the United States over the next five years. This investment aims to bolster the company's infrastructure and ensure domestic production of key medications. The initiative is expected to create 1,000 new jobs directly and an estimated 4,000 additional jobs indirectly through partnerships with U.S. suppliers. Notably, part of these plans includes the establishment of a new innovation hub for biomedical research in San Diego, California, alongside the construction of four new production facilities, details of which will be disclosed shortly.