Commerzbank is defending itself against a hostile takeover by Unicredit with job cuts and increased profit targets. The Frankfurt-based bank announced on Friday the elimination of an additional 3,000 jobs and raised its business targets through 2030. Lower costs and higher profits are driving up the share price, making a potential takeover more expensive.
Unicredit has been buying large stakes in Commerzbank since late 2024 and is pursuing a takeover. On Tuesday, Unicredit officially submitted an exchange offer to Commerzbank shareholders. The stated goal of the offer, which has not been deemed particularly attractive, is to initially increase the Italians' Commerzbank shares to over 30 percent. Unicredit currently holds approximately 25 percent of Commerzbank shares.
The Frankfurt bank rejects the takeover plans and is relying on ambitious business targets to convince its shareholders not to sell their shares. In its quarterly report, it once again pointed out that Unicredit is not offering a premium to Commerzbank shareholders, and described the plans presented by the Italian bank for a joint future as "vague" and risky.
For the current fiscal year, Commerzbank raised its profit expectations from €3.2 billion to €3.4 billion. In 2025, it was €2.6 billion. By 2028, it should reach €4.6 billion, and by 2030 nearly €6 billion. "The continued transformation of the bank is accompanied by a company-wide reduction of approximately 3,000 additional positions gross," the statement said.
Commerzbank CEO Bettina Orlopp sees her company on track. "We started the year with record-level results," she stated. "This proves: our strategy works - and has more potential than originally planned." The targets through 2030 now reflect this. "Every alternative must be measured against this."
According to the quarterly report presented on Friday for the start of the year, net profit increased by nine percent to €913 million, and revenue by five percent to €3.2 billion. Last year, the bank had already cut 3,000 positions.
The tone in the dispute over a possible takeover by Unicredit has recently sharpened significantly. The Italians criticized Commerzbank's strategy plans. They drew a reprimand from the German banking regulator BaFin for advertising campaigns with negative messages about the German bank. Commerzbank accused Unicredit of a "continuously hostile tactic and misleading representation."
The Frankfurt bank is receiving support from the federal government. On Thursday, Chancellor Friedrich Merz (CDU) once again sharply criticized Unicredit's approach. "We decisively reject hostile and aggressive actions," he said at a German Chamber of Commerce and Industry event. "This destroys trust and does not enable new trust."
The German state still holds a 12.1 percent stake in Commerzbank - a remnant of the 2008 rescue operation during the global financial crisis. Following Unicredit's takeover plans, the federal government announced it would not sell any additional shares.
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