We wrote about the status of the case in detail here:
The leaders of Commerzbank and UniCredit did not discuss a possible merger at their recent meeting, Commerzbank CEO Bettina Orlopp told Handelslatt, stressing that any merger would result in a loss of customers and a deterioration in its credit rating. “Just because a merger looks good on paper doesn’t mean it can be executed well and ultimately succeed and create value for our shareholders,” Orlopp was quoted as saying by Reuters.
Commerzbank’s cost reductions, if UniCredit were to buy its German rival, would mainly affect the head office, not the branch network, Andrea Orcel, CEO of UniCredit, said on Friday. In his commentary published in the British The Economist on October 3rd, Orcel rejected the possibility of UniCredit’s headquarters being moved to Germany, although most of the assets would now be in Germany. UniCredit is “very, very proud” of its Italian roots, and a move to the north would be giving in to (German) political pressure, the Economist quoted Orcel as saying.
At the same time, a significant increase in efficiency could be achieved with the merger: Commerzbank operates with a cost/income ratio of 59% compared to 39% of UniCredit’s German interest, HVB.
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Source: www.portfolio.hu
