Commerzbank wants to prove that it can do it alone. This is the strategy that the CEO Bettina Orlopp has been carrying out for a month now to try to resist the blitz by Unicredit. Its aim seems to be to free up as much capital as possible to distribute to shareholders or to invest in order to show the strength of the bank German.
A key date, in this juncture, will be Wednesday 6 November, the day on which Commerzbank (on the same day as Unicredit, by the way) will publish its third quarter accounts and will also launch the first tranche of the programme 600 million buyback euro.
Commerzbank: 600 million buyback
Commerzbank announced in a statement that the first tranche of its new 600 million euro buyback program will be launched on Wednesday. The board of directors has decided to launch the operation, which has already received the green light from the German Finance Agency and the European Central Bank.
This is the third share buyback program from 2023The plan, which is expected to be completed by mid-February, is part of the 2024 capital return program that includes a dividend and two tranches of buybacks.
"Our shareholders can count on us – said CEO Bettina Orlopp – We will return at least 70% of our net result for 2024 but no more than the net result after deduction of the coupon payments of the At1 securities″. “With the consistent implementation of our strategy – she concluded – we are creating significant long-term value for our shareholders".
Commerzbank: Orlopp's strategy to hinder Unicredit
For Bloomberg, Orlopp's strategy would be clear: faced with a possible takeover by Unicredit, the CEO intends to unlock more capital to invest or distribute and convince shareholders that the bank represents an investment in itself.
The buyback plan had already been scheduled before the institute led by Andrea Orcel announced the purchase, last September 10, of the first 9% of the German bank (later became a potential 21%). The operation was then put on hold. “It was argued, for example, that the buybacks could increase the participation of Piazza Gae Aulenti, thus strengthening its grip on the bank,” explains Mf.
The first tangible effect of the buyback, however, will be another: to further increase Commerzbank title which has already recorded a 27% increase since last September. In this way, the CEO will be able, on the one hand, to ingratiate herself with shareholders, on the other to raise the stakes in the event of a possible public offering by Unicredit, which is still waiting for the ECB's response (expected in the coming weeks) to rise to 29,9% of Commerzbank.
Unicredit creates third banking group in Romania
In the meantime, Unicredit is not sitting on its hands. On Monday, the bank announced that it had completed the acquisition of Alpha Bank Romania which will be merged into its Romanian subsidiary giving birth to the third banking group by assets in the country with a market share of 12%.
Unicredit has in fact acquired 90,1% of Alpha Bank Romania for 255 million euros in cash plus 9,9% of UniCredit Romania, as part of the strategic partnership signed with Alpha Services and Holdings announced a year ago, Piazza Gae Aulenti said in a note. The merger by incorporation of Alpha Bank Romania into Unicredit Romania will take place in the second half of 2025.
