Commerzbank Stock: Nears €21 Amid UniCredit Takeover Battle

Commerzbank shares continue to show resilience, approaching the €21 mark despite ongoing uncertainty surrounding Italian banking giant UniCredit's acquisition plans. The stock recently traded at €20.67, marking a significant 48% increase from its March 2024 low of €10.63 and edging closer to its 52-week high of €20.76. This robust performance comes as UniCredit seeks to increase its stake in the German lender to nearly 30%, having already secured control of approximately 28% of shares through direct ownership and financial instruments. Meanwhile, Commerzbank management is pursuing independence through a strategic restructuring plan that includes eliminating 3,900 positions to boost profitability, with €700 million already set aside for this purpose.

Labor Rights Present Major Obstacle

The acquisition faces substantial hurdles beyond regulatory scrutiny from both the German Federal Cartel Office and European Central Bank. Commerzbank's works council has vowed significant resistance, highlighting UniCredit's apparent underestimation of Germany's strong employee co-determination laws. A transformation agreement valid until mid-2028 creates particularly challenging conditions for potential acquirers, establishing robust worker protections including costly early retirement options averaging €380,000 per employee and regional job guarantees that effectively prevent layoffs. These labor provisions, combined with €50,000 "sprinter bonuses" for employees accepting partial retirement by year-end, substantially complicate UniCredit's integration plans and could significantly impact any valuation premium in a formal takeover offer.