The German government believes UniCredit’s plans to squeeze out remaining Commerzbank shareholders will not be possible, according to Reuters.

"UniCredit management's current plans are ​not viable, particularly with regard to business with small ​and medium-sized companies," a government source told Reuters.

In Germany, minority shareholders can be given mandatory compensation and forced out of a company if the company taking over holds at least 90 per cent of the shares.

However, the German government holds a 12.11 per cent stake in Commerzbank and sources told Reuters it intends to back Commerzbank’s employees, as well as its importance to Frankfurt as a financial hub and as a core backer for Germany’s ”Mittelstand” group of small and medium enterprises.

The German government officially rejected Unicredit’s offer on 16 June.

The German government has reduced its stake in the Commerzbank since its peak of 25 per cent, held in the aftermath of the financial crisis. In 2024, the government sold 53.1 million Commerzbank shares to Unicredit, or 4.49 per cent of its total 16.49 per cent shareholding in the bank.

UniCredit’s attempt to takeover Commerzbank has been subject to corporate back and forth, and has become a point of discussion throughout German politics.

On 18 May, Commerzbank formally rejected Unicredit’s €35 billion takeover bid and later that month the German chancellor Friedrich Merz described Unicredit’s approach as “hostile and aggressive”.

On 15 June, UniCredit also rejected claims by Commerzbank that it had overstated take-up of its buyout offer.

Shareholders have until 3 July to tender their shares at UniCredit’s buyout price. The final result will be published on 8 July.

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