Takeover target Commerzbank gets new CEO as UniCredit circles

Amid ongoing controversy over a possible takeover of German lender Commerzbank, the bank has announced chief financial officer Bettina Orlopp as its new CEO.

Orlopp has been with Commerzbank since 2014 and on the board since 2017.

The appointment comes as Italian bank UniCredit revealed last week it had increased its stake in the German bank in what appears to be a move towards a merger with Commerzbank – to the dismay of the German government.

The bank’s management, employees, and German Chancellor Olaf Scholz have all voiced their opposition, fearing a merger could lead to heavy job cuts and also, potentially, the hindering of lending to small and medium-sized businesses.

Some are also angered by UniCredit’s handling of its acquisitions in Commerzbank, accusing the lender of being secretive about its holdings.

The Italian bank acquired a 4.5% stake in Commerzbank earlier this month, which it bought from the German government.

On Monday, UniCredit said it had increased its stake in Commerzbank from around 9% to 21%, subject to regulatory approval.

According to the FT, the state was only told at the last minute that Commerzbank already had a 4.5% share – bringing its total stake to 9%.

“Unfriendly attacks, hostile takeovers are not a good thing for banks, and that is why the German government has clearly positioned itself in this direction,” said Chancellor Olaf Scholz earlier this week.

Commerzbank said in a statement on Tuesday evening that Orlopp would assume her new duties “in the near future”.

Significant tasks ahead

Manfred Knof, her predecessor, announced earlier this month he would step down as CEO at the end of 2025.

“While we have a strategy that is effective, significant tasks lie ahead,” Orlopp said in a statement following her appointment.

“Together with all our key partners, we will navigate through the challenges ahead of us successfully.”

Speaking as CFO last week, Orlopp also commented on the UniCredit advances.

“We have all been very surprised by the process,” she  said.

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“That’s why the most important thing now is simply to sort it out calmly, to think about what’s on the table now and how to deal with it.”

Meanwhile, UniCredit’s CEO Andrea Orcel noted on Wednesday that he would not be seeking a board seat at Commerzbank.

“I usually do not believe in investors having board seats,” he said at a Bank of America conference.

“And in this specific case, I think it’s inappropriate for us to have a board seat because we are also a competitor. I don’t think that that is correct.”

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