Commerzbank has announced a restructuring plan that includes cutting 3,000 jobs and significantly raising its profit targets, a clear attempt to fend off a takeover bid from Italy's UniCredit. The Frankfurt-based lender, Germany's second-largest private bank, aims to increase revenues to €16.8bn by 2030 and net profit to €5.9bn, up from €913mn in the first quarter of this year.
Chief executive Bettina Orlopp described the targets as "ambitious and at the same time reliable," adding that "any alternative must be measured against this" — a pointed reference to UniCredit's offer. The job cuts, which affect roughly 8% of the current 38,000-strong workforce, are expected to cost around €450mn. Commerzbank also plans to rely more heavily on artificial intelligence to streamline operations.
UniCredit's Bid and Berlin's Reaction
UniCredit formally submitted a voluntary share exchange offer this week, valuing Commerzbank at just under €35bn. The Italian bank has been circling its German rival since acquiring a large stake from the German government in 2024 and later increasing it through market purchases. Under German takeover law, this triggered a mandatory formal offer. UniCredit now holds a direct stake of about 26%, with an additional 4% via total return swaps.
The bid has alarmed policymakers in Frankfurt and Berlin. Commerzbank fears a takeover would gut its business model, particularly its role as a key financier of Germany's Mittelstand — the small and medium-sized enterprises that form the backbone of the German economy. UniCredit's plans reportedly involve cutting up to 7,000 jobs in total, though Commerzbank sees the Italian bank's proposals as "vague" and fraught with "considerable implementation risks."
German Chancellor Friedrich Merz (CDU) recently backed Commerzbank, stating that Germany needs strong banks but that "not every type of takeover" is welcome. "We firmly reject hostile and aggressive behaviour," Merz said in Berlin. According to media reports, the federal government is also considering increasing its stake in Commerzbank, which currently stands at around 12%.
Commerzbank has said it remains open to talks in principle, provided shareholders are offered an attractive premium and key elements of its strategy are retained. The bank's restructuring plan is seen as a bid to demonstrate its standalone viability and deter UniCredit's advances.
This development is part of a broader trend in European banking, where cross-border consolidation is accelerating. In a related story, European banks diverge as HSBC's profit slips on Iran war charges while UniCredit surges, highlighting the contrasting fortunes of major lenders on the continent.
The outcome of this takeover battle will have significant implications for Germany's financial landscape and the broader European banking sector. For now, Commerzbank is betting that its new strategy will convince shareholders and regulators alike that it can thrive independently.
