Commerzbank boss Bettina Orlopp sees major risks in a takeover by the major Italian bank Uncredit. “Our rating would deteriorate, probably even significantly,” Orlopp told Handelsblatt. “We would lose customers who have certain rating requirements and only do business with banks with very good credit ratings.” In addition, refinancing costs would increase. Commerzbank has an “A-” rating from the rating agency S&P, while Unicredit is three levels lower at “BBB”.
In addition, the integration of two large banks is extremely difficult, said Orlopp. After taking over Dresdner Bank in 2008, Commerzbank spent several years merging the systems of both banks. “We cannot afford such a standstill in today’s world, which is characterized by so many technological upheavals and very intense competition.”
Unicredit joined Commerzbank in September and wants to take over the entire institution if possible. In this case, German medium-sized companies and corporations would receive fewer loans, said Orlopp. “When it comes to corporate customers, there is a lot of overlap between the German Unicredit subsidiary HVB and us. In the event of a merger, the credit exposures of some companies would have to be reduced in order to prevent cluster risks.” +++
