Published by Jessica Weisman-Pitts
Posted on November 22, 2024
3 min readLast updated: January 28, 2026
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By Valentina Za
MILAN (Reuters) – UniCredit CEO Andrea Orcel on Friday ruled out moving the bank’s headquarters to Germany if it acquires Commerzbank, adding the Italian lender would wait for a new government in Berlin before any potential bid.
Speaking at the JPMorgan European Financials Conference in London, Orcel said “No” when an investor asked if UniCredit could relocate from Milan to Frankfurt or Munich in the event of a deal.
UniCredit in September became the biggest investor in Commerzbank with a near 21% stake, conditional on supervisory approval.
Orcel stressed UniCredit had a federal model with its centre in Milan and shifting the base to Germany, where it controls Munich-based HVB, would be at odds with the position of other subsidiaries.
A Commerzbank acquisition would make Germany the biggest market for UniCredit, accounting for more than half its total assets.
This prospect has stirred concerns in Italy that, in order to overcome German opposition to a deal, UniCredit could offer to move its central functions to the euro zone’s biggest economy.
“We’re in Milan, and we’re proud of being in Milan,” Orcel said, adding Italians accounted for less than half the employees in Milan, a proportion that would fall further if UniCredit merged with Commerzbank.
UniCredit is slashing its central office staff.
“If we make the headquarters a topic, then a lot of other countries are going to come back and say: ‘Well, hang on a second, with the next deal we’re moving it to somewhere else?”
“I don’t think that’s functional to a culture that we have.”
Despite falling rates, Orcel said UniCredit would keep its net profit above 9 billion euros in 2025, matching this year’s result. It will surpass 9 billion in 2026 with “an ambition to land at 10 billion” in 2027 or 2028.
In reference to the timing of a potential bid, Orcel said UniCredit did not want to take advantage of the political vacuum as Germany holds national elections.
“Notwithstanding what we have been accused of…we have tried to be very respectful of Germany,” he said. Earlier this month he guided for a decision on a potential full takeover in a year or so.
A new government would have “a lot of better things to do than to talk to me about the transaction. Therefore there is an element of patience, of waiting where it lands.”
UniCredit has hedged its Commerzbank position and said it could also just sell its stake at a profit.
“We will only do an M&A if, adjusted for the risk of execution, our return on investment is above 15%,” he said.
Falling interest rates will lead to diverging performances among lenders and ease deals, in his view.
“I don’t know if everybody, but at least UniCredit, in the next three years, will do M&A, at our principles,” he said.
Even with a deal, UniCredit will maintain its payouts unchanged. It will also “strive to keep the dividend per share (DPS) trajectory” unaltered, Orcel said, ruling out issuing a lot of shares to finance a deal.
(Reporting by Valentina Za; editing by Jason Neely, Susan Fenton and Franklin Paul)
A merger is a business combination where two companies join to form a new entity, often to enhance market share, reduce competition, or achieve economies of scale.
A central bank is a national financial institution that manages a country's currency, money supply, and interest rates, and oversees the banking system.
Net profit is the amount of money a company earns after all expenses, taxes, and costs have been subtracted from total revenue, indicating the company's profitability.
An acquisition occurs when one company purchases most or all of another company's shares to gain control, often to expand its operations or market reach.
A stake in a company refers to the ownership interest held by an individual or entity, typically expressed as a percentage of the total shares.
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