First, a period of collaboration, then the actual merger. All with the approval of the German government, assuming an agreement is reached. This is the plan outlined by the CEO. Bettina Orlopp for the future of CommerzbankIt's a shame that she might not be the one to make it happen, considering that after two years of internal warfare, in which everything and the opposite of everything was said, the number one of Unicredit, Andrea Orcell he is reportedly thinking of kicking her out, along with the chairman of the supervisory board, Jens Weidman, asserting its majority stake.
Orlopp: "With Unicredit, a two-phase plan."
Speaking at Barclays' Global Finance Conference, the current Commerzbank chief answered questions about Monday's meeting between Orcel and German Finance Minister Lars Klingbeil. "It's clear that we are aligned with the Government because it is a major shareholder with two seats on the supervisory board and special rights. And also it is important that there are discussions between the two main shareholders, especially in view of a potential merger,” said the manager, who said that a future “phase two” in which the merger between Commerzbank and HVB would take place “can only function smoothly if there is also the agreement of the second largest shareholder,” Orlopp underlined.
The CEO reiterated that in this phase Commerzbank remains an independent and listed bank, despite having a majority shareholder. In "phase 1", she continued, the bank is focused on its standalone strategy but can also "think about what we can do together" with Unicredit and "how to better define our 2028 and 2030 targets through collaboration, finding common ways to increase efficiency gains and increase revenues". The goal of "phase 1" is therefore to "achieve the targets but probably also define more aggressive ones in light of the new situation". At a certain point, and the timing can only be decided by Unicredit, we will move to a “phase 2” with “a real consolidation with the integration between HVB and Commerzbank”.
UniCredit: Orcel Wants to Kick Out Orlopp and Weidmann
However, it's not certain that Orlopp is the one managing the transactions he's talking about. According to long-standing speculation, after a two-year battle for control of Commerz, which included no shortage of accusations and vitriolic statements, Andrea Orcel would like a changing of the guardBoth CEO Bettina Orlopp and Supervisory Board Chairman Jens Weidmann are out. Not surprisingly, over the summer, Orcel repeatedly stated his intention to engage in dialogue with Commerzbank employee representatives, local authorities, and the central government, excluding Orlopp and Weidmann.
Asked about the matter by ReutersUnicredit did not respond to a request for comment, while a spokesperson for Commerzbank ruled out any changes at the top, declaring that "the Commerzbank board of directors has contracts in place, the supervisory board is elected by the general meeting and there is full agreement on the strategy." However, Unicredit is in a position to call an extraordinary meeting of shareholders and appoint new representatives in Commerzbank.
The German Government's conditions
And we are also starting to take shape what the potential outcomes might be. topics to be negotiated with the Berlin government which, during the meeting on Monday, he set five conditionsThe bank must remain listed on the stock exchange and its headquarters must remain in Frankfurt. Credit and employment guarantees are also required: Commerz must continue to finance SMEs both at home and abroad, While its 40 employees will have to be adequately considered. The final condition: the government must retain two seats on the supervisory board, as stipulated in an agreement signed in 2009, when the German state acquired a stake in the institution in order to save it.
There are two demands Orcel is reluctant to give in to: the first concerns the international network, which the CEO believes should be streamlined. The second is the very presence of the two government representatives on the board of directors—the result of a seventeen-year-old declaration that UniCredit no longer has any reason to exist given the change in ownership—which could hinder the Piazza Gae Aulenti plans. The tug-of-war has already begun.
