Commerzbank has announced plans to lay off 3,000 more people while sharply increasing its profit targets in direct response to UniCredit’'s takeover targets.
The Frankfurt-based lender announced on Friday that revenues are expected to rise to 16.8 billion Euro’ by 2030, while net profit is expected to reach 5.9 billion Euro’.
Bettina Orlopp, chief executive, said the new targets reflect “iddiali and at the same time reliable” growth, and “ added that any alternatives should be evaluated accordingly; This was a reference to the Italian bank's proposal.
Additional layoffs present approx. 38,000 jobs %8It will affect ’ini. The bank estimates that the cost of the restructuring will be around 450 million euros. According to Commerzbank’, the increase in the use of artificial intelligence will also help to make processes more efficient.
Why is this important?
UniCredit formally submitted its takeover offer this week, a voluntary share exchange offer for all outstanding shares of Commerzbank’, which has valued the German bank at just under 35 billion Euro’.
Since the Italian bank bought a large share from the German government in 2024 and then increased that share through market purchases to the point where it was legally necessary to make a formal offer under German takeover law, the Commerzbank revolves around ’.
UniCredit is currently in Commerzbank’ta %It has a direct stake of 26 percent and is approximated through total return swaps. %It has an additional stake of 4’. The proposal caused alarm bells to ring in Frankfurt and Berlin’, and Commerzbank fears the takeover will disrupt its business model.
The proposal caused alarm bells to ring in Frankfurt and Berlin’, and Commerzbank fears the takeover will disrupt its business model.
The Bank is the second largest private credit institution in ’, Germany, and an important source of financing for the country's famous Mittelstand’ (small and medium-sized enterprises that form the backbone of the German economy).
According to UniCredit’'s plans, a total of around 7,000 jobs could be terminated. Commerzbank does not consider a takeover necessary at the moment.
In the bank's opinion, the plans offered by UniCredit include “, which is unclear, and ”, which has significant implementation risks.
However, the bank said it would remain open to discussions in principle, provided that an attractive premium is offered to shareholders and the key elements of the strategy are retained.
German Chancellor Friedrich Merz (CDU) recently backed Commerzbank’ and Germany announced that ’ needed strong banks, but any takeover of “ would not be welcome.
’ strongly rejects hostile and aggressive behavior, Chancellor Berlin “de said.
Media reports are also examining whether the federal government can increase its stake in Commerzbank’.
The state currently holds about 12 percent of the shares. Commerzbank posted a net profit of €913 million in the first quarter.
According to the bank, this was the best quarterly result since 2011’.
