Bank executive at HypoVereinsbank remains in hold, awaiting next move
In the world of German and Italian banking, a significant development is unfolding as UniCredit, an Italian banking giant, seeks to acquire Commerzbank, the second-largest German business bank based in Frankfurt am Main. UniCredit's CEO, Andrea Orcel, has been actively pushing for this merger, acquiring a substantial stake and advocating for the deal to create a "new national banking champion for Germany."
However, Commerzbank's leadership, led by Sascha Uebel, deputy chair of Commerzbank’s supervisory board, has publicly expressed firm opposition to the merger. Uebel has openly urged Orcel to sell his shares, take his profits, and step away from the bid. This resistance from within Commerzbank's leadership signals a challenging path for UniCredit's ambitious plans.
Meanwhile, HypoVereinsbank (HVB), the third-largest German business bank headquartered in Munich, remains on a different trajectory. Marion Höllinger, the first woman to lead HVB, has been steering the bank towards success since her appointment as CEO in early autumn 2022. Höllinger, who has been with HVB for 34 years, has expanded her role from a member of the board of directors to the spokesperson for the nine-member management board following the company's conversion from a stock corporation to a limited liability company.
Under Höllinger's leadership, HVB has recently increased its profitability, contributing to the record figures of its parent company, Unicredit. In the first quarter alone, HVB boosted its net result by 12% to 613 million euros. This solid performance is a testament to Höllinger's expertise in the private customer sector, a role she assumed when she joined the HVB board in August 2021.
Despite the ongoing UniCredit-Commerzbank acquisition saga, HVB and Höllinger have not publicly commented on or involved themselves in the bid as of now. However, Orcel has proposed talks to avoid a hostile takeover attempt, a proposal supported by Höllinger. If successful, UniCredit would continue Commerzbank and HVB as "independent" units in parallel, according to their statements.
The federal government's reluctance and media reports suggest that UniCredit's big move is moving further away due to resistance and reluctance. As the drama unfolds, HVB continues to thrive under Höllinger's leadership, positioning the bank as a strong player in the German banking industry.
[1] Source: Reuters, Bloomberg [2] Source: Financial Times
The proposed acquisition of Commerzbank by UniCredit is facing opposition from within the latter's intended target, as Commerzbank's leadership has openly urged Orcel to retreat from the bid.
In the meantime, HypoVereinsbank (HVB), under the leadership of Marion Höllinger, has been increasing its profitability, contributing to Unicredit's record figures, and has been suggested as a potential alternative for UniCredit, should the Commerzbank merger falter.
