Unicredit is on track to increase its stake in Commerzbank to around 30 percent by the end of the year, CEO Andrea Orcel on Thursday at a banking summit hosted by «Handelsblatt» in Frankfurt. Just a day earlier, Commerzbank CEO Bettina Orlopp had defended the independence of her institution at the same event.

According to Orcel, he already has a clear vision of how Commerzbank could move forward under UniCredit ownership.

He sought to counter fears within the bank and in German political circles that a takeover would result in a massive reduction of jobs.«I think a significant number of positions at headquarters would be eliminated, but far fewer than people are suggesting,» said the Unicredit CEO. «In five or seven years, they would probably cut more jobs on their own than they would in a consolidation with us - because they would have to.»

Nor is a widespread branch closure on the agenda. «For us, it is about generating more revenues. We will not dismantle the branch network; we will invest in it.»

The ongoing restructuring plan at Commerzbank, which foresees cutting about 3,900 jobs by the end of 2027, will not be sufficient, he argued. «They must not become weaker, because no bank in Germany can survive with a cost-income ratio of 57 percent when competitors are below 40.»

Constructive Dialogue

Orcel also wants to involve policymakers more closely in the discussions. The German government still holds a 12 percent stake in Commerzbank, and any further sale has so far been ruled out. «We are here and welcome every constructive dialogue with anyone who wishes to engage,» Orcel said, signaling openness to talks.

However, he will not allow himself to be deterred by resistance. The German government’s view is «a critical factor – but not the only factor. We are accountable to our shareholders, employees, and clients—but not to the government. That said, we respect their opinion.»

Unicredit has long been active in Germany through Munich-based HypoVereinsbank (HVB). A takeover of Commerzbank is seen as an opportunity to strengthen its position in the retail and SME banking business.

Commerzbank's management and works council reject Unicredit's approach, calling it «hostile» and «unfriendly». A day earlier, CEO Bettina Orlopp had defended the bank's independence.

«We have been able to demonstrate many, many successes over the past twelve months,» she said.» Looking at the bank's half-year results, «the numbers are excellent». «And we have no intention of slowing down—we are fully focused on executing our strategy.»

Shareholders to Decide

Ultimately, the decision over a potential takeover of Commerzbank rests with the shareholders, and that is where it belongs. Whether such a transaction makes sense will determine the outcome. As for herself, she said she would «of course vote no».