Commerzbank shares surge after UniCredit's latest stake acquisition

Shares of Commerzbank, Germany's second-largest bank, surged 17% following news that the Italian lender UniCredit had acquired a 9% stake in the bank on Wednesday.

The acquisition price was €13.20 per share, significantly higher than Commerzbank’s market price of €12.60 at the close on Tuesday.

The bank's shares soared 20%, reaching a peak of €15.22 during the day, before pulling back to close at €14.69. The price reaction indicates that investors welcomed the deal and remained optimistic about the stake acquisition.

UniCredit has a market capitalisation of €59.5bn, while Commerzbank is valued at €17.4bn as of market close on Wednesday.

The acquisition marks the first step by the German government towards reducing its holdings in Commerzbank, following its announcement made on 7 September.

The German government had held 16.49% of Commerzbank's shares since it injected €18.2bn to rescue the bank during the 2008 global financial crisis.

The deal has reduced Berlin's stake to 12%, but it remains the largest shareholder in Commerzbank. The government also noted that Commerzbank has been profitable since 2021 and that "around €13.15bn has been repaid to date".

In a statement on Tuesday, Commerzbank confirmed that CEO Manfred Knof will not be seeking an extension to his contract when it ends at the end of 2025. That news came just one week after the German government announced its plan to reduce its stake.

In a separate statement, UniCredit said: "4.49% has been acquired through an accelerated book-building offering on behalf of the Federal Republic of Germany, in line with its intention to reduce its stake in Commerzbank AG. The remainder of the stake has been acquired through market activity."

However, UniCredit's ambitions do