ROME (Reuters) – German trade union Verdi will oppose Commerzbank’s cross-border merger even if the bidder is not an Italian bank like UniCredit, an official said on Saturday.
Berlin was surprised by UniCredit’s decision to build a significant stake in state-backed Commerzbank, a move the Italian bank says could lead to a merger.
Officials told Reuters on Friday that Germany was working to thwart a potential takeover that could link Berlin’s fortunes with those of debt-laden Italy.
“(Our opposition) is not due to the fact that (the bidder) is an Italian bank. It could be French or Spanish,” Frederik Werning, a trade union official at Verdi and a member of Commerzbank’s supervisory board, said in an interview. With the Italian broadcaster La7.
“When there is a merger every time they say nothing will change, but once out of every two times they do not keep their promise, jobs will be lost in both Germany and Italy.”
Werning added that the combined banks will be busy integrating for at least two years at a time when Germany needs to boost investment.
He added: “If the acquisition takes place, UniCredit and Commerzbank will have to take care of themselves for years and will no longer be strong partners for their clients, neither in Italy nor in Germany.”
At the heart of German concerns lies UniCredit Bank’s holding of Italian government bonds worth 40 billion euros ($44 billion). Commerzbank, which is smaller and financially weaker than UniCredit, owns billions of euros in Italian bonds.
($1 = 0.9143 euros)