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UniCredit nears majority voting control of Commerzbank, signaling major European banking consolidation

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Italy’s UniCredit has secured just under half of the voting rights in Germany’s Commerzbank following a successful takeover bid, setting the stage for a major realignment of the European banking landscape.

According to a report by German Foreign Policy, the Italian lender is positioned to seize control of both the supervisory and management boards of Germany’s second-largest private bank at the annual general meeting of shareholders in 2027.

In this acquisition campaign, UniCredit has drawn support from an international network of financial institutions, including Japan’s Nomura, France’s BNP Paribas, and several US banks.

The development not only brings a near two-year power struggle between the major German and Italian lenders to a close, but also underscores the broader, ongoing consolidation within the European banking sector.

As UniCredit positions itself as a new European banking group, Germany increasingly finds itself on the defensive.

Commerzbank, a cornerstone of the Frankfurt financial center and a vital source of credit for Germany’s small and medium-sized enterprises (SMEs), is now transitioning to foreign control.

The conflict highlights the deep-seated tension between the integration of the European financial sector and the national interests of individual member states seeking to maintain control over their domestic economic hubs.

UniCredit secures majority voting stake

In early May, UniCredit launched a takeover bid that remained open until early July, offering 0.485 of its own shares for each share of Commerzbank.

Following the expiration of the offer period, UniCredit announced that it had acquired 17.6% of Commerzbank’s shares through the share exchange offer.

This transaction lifted its total holdings in the Frankfurt-based lender from 26.77% to 44.37%, effectively handing UniCredit victory in the two-year battle for control.

When factoring in an additional 3.22% stake that UniCredit holds through derivative instruments, its total shareholding reaches 47.59%.

Because the treasury shares held by Commerzbank do not carry voting rights, UniCredit’s stake translates to 49.65% of the total voting rights, according to the Italian bank’s own data.

In addition, UniCredit holds derivatives representing another 13% of Commerzbank shares, though these instruments do not currently carry voting rights.

At the next annual general meeting scheduled for the spring of 2027, eight of the ten shareholder representatives on the supervisory board will stand for re-election.

Leveraging its majority at the annual meeting, UniCredit will be in a position to decisively influence the allocation of these key seats.

Criticism of the bid and “market manipulation” claims

Since the transaction, allegations of market manipulation in connection with the takeover bid have been raised.

However, the Commerzbank General Works Council, which filed a formal complaint against unidentified individuals, suffered a legal defeat in its challenge.

Commerzbank’s management has also repeatedly criticized UniCredit’s disclosures and brought the matter to the attention of BaFin, Germany’s financial regulatory authority.

According to the regulator, a significant portion of the tendered shares belonged to banks and market participants closely linked to UniCredit.

Commerzbank contends that there is a lack of transparency regarding the volume of borrowed shares that were tendered and the specific hedging agreements that remain in force.

It is established that Nomura of Japan, Citigroup of the US, and BNP Paribas of France conducted swap transactions with UniCredit involving Commerzbank shares.

Alongside these institutions, UniCredit can also rely on other major financial firms, including Jefferies and Bank of America.

These partner banks provide UniCredit with potential access to an additional 13% of Commerzbank shares at a specified time.

German government faces potential removal from bank management

In mid-June, UniCredit threatened to replace Commerzbank’s supervisory and management boards.

To execute such a move, however, the major Italian bank would need to replace the two supervisory board members appointed by the German federal government.

The German government secured the right to appoint two representatives to the supervisory board following its state-funded bailout of Commerzbank.

UniCredit has now stated that, provided it receives “sufficient shareholder support” at the annual general meeting, it will be “in a position to elect all shareholder representatives to the supervisory board.”

If UniCredit successfully replaces Commerzbank’s supervisory and management boards at the 2027 annual meeting, it would represent a direct setback for the federal government.

The move would directly impact supervisory board members whose government-appointed terms run through 2029.

Commerzbank’s critical role in the German economy

For the Frankfurt financial center, these developments present a serious challenge.

Commerzbank is a foundational institution of the German financial sector, maintaining deep-seated ties with Germany’s small and medium-sized enterprises (SMEs).

Should the bank be reduced to a branch of UniCredit, key lending decisions would be routed to Milan instead of being resolved in Frankfurt.

Consequently, the Frankfurt financial hub risks losing influence, decision-making authority, and economic sovereignty.

According to Commerzbank, the institution processes approximately 30% of Germany’s foreign trade. Many of the bank’s employees view this extensive reach as a key competitive advantage.

Commerzbank supports the international commercial activities of a vast number of mid-sized firms that frequently struggle to find suitable, dedicated points of contact within larger international banks.

The “consolidation” trend in the European banking system

While the takeover of Commerzbank has met with widespread resistance in German political circles, it has received strong backing from economists, particularly those from other EU member states.

Monika Schnitzer, head of the German Council of Economic Experts, believes there are sound economic reasons to analyze cross-border mergers rather than rejecting them reflexively.

In her view, the European financial market remains insufficiently integrated. She further argues that German banks are highly inefficient by international standards and are therefore ill-equipped to compete against major global institutions.

As early as 2024, European Central Bank (ECB) President Christine Lagarde of France stated that cross-border banking mergers are “desirable” to strengthen European banks in their competition with major US rivals.

Luis de Guindos, the Spanish Vice-President of the ECB, has similarly criticized the German government’s protectionist stance.

In a recent opinion piece published in the Handelsblatt newspaper, Omid Nouripour, Deputy President of the Bundestag (Alliance 90/The Greens), accused the federal government of inconsistency.

Nouripour argued that while the government champions a banking union at EU summits, it reacts to a concrete cross-border bank merger with a “reflex of a national ownership mentality.” He criticized the federal government for praising European integration only “as long as it remains abstract.”

EU Competition Commissioner Teresa Ribera also urged member states to support cross-border banking consolidations. “Member states should welcome such transactions for the public good,” Ribera said.

Signals of compromise from Berlin

The German federal government initially reacted with hostility to UniCredit’s successful takeover bid.

“From the federal government’s perspective, UniCredit’s aggressive and hostile approach remains unacceptable,” the Federal Ministry of Finance said in a statement.

At the same time, Berlin rejected the Italian bank’s takeover offer for its remaining Commerzbank shares.

Last week, Chancellor Friedrich Merz, speaking before parliament ahead of the summer recess, reiterated that the federal government had not accepted UniCredit’s offer and was retaining its shares, unlike a “significant portion” of other shareholders.

However, in the same address, Merz adopted a more conciliatory tone, assuring, “We are not blocking this merger.”

According to the Handelsblatt newspaper, the terms of the takeover are currently being negotiated within the federal government.

Among other stipulations, Berlin is demanding that Commerzbank remain a key lender for German small and medium-sized enterprises.

In addition, the federal government is demanding that Frankfurt, the historic headquarters of the financial institution, remain a major hub for the bank.

UniCredit’s German headquarters has been based in Munich since its 2005 acquisition of HypoVereinsbank.

Europe

Right-wing calls to ban left parties and groups mount in Europe

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Youth protests spreading across European nations, particularly in France, are serving as an occasion for right-wing parties and governments to escalate demands for bans.

In France, for example, right-wing conservative politicians such as Senate President Gérard Larcher and presidential candidate Bruno Retailleau of The Republicans (LR) are now openly demanding that the party La France Insoumise (LFI) be banned.

Matthieu Valet, a Member of the European Parliament from Marine Le Pen’s National Rally (RN), said at the party congress held in Orléans on 24–25 October: “We will dissolve all anti-fascist organisations.”

Polls unanimously show that RN candidate Marine Le Pen leads the vote for the presidential election in April 2027.

In Spain, the rising right-wing party Vox submitted a draft bill to parliament in December 2025 aimed at dissolving organisations linked to the anti-fascist movement.

Vox is polling at 19% in recent surveys, and the party hopes to enter government by forming a coalition with the conservative Popular Party (PP) following the elections on 29 November.

In such a scenario, banning anti-fascist organisations in Spain could become possible.

Acts of violence linked to protests are currently being used increasingly to threaten left organisations with bans.

Belgium offers another example. Since last year, Interior Minister Bernard Quintin has been attempting to ban organisations that threaten “national security or the foundations of the rule of law”.

In this context, government officials cite “Antifa” as an example. Even in the autumn of 2025, Georges-Louis Bouchez, president of Quintin’s Reformist Movement (MR), openly called for the “dissolution of Antifa”.

When property damage occurred on the fringes of student protests in Liège in early October this year, Quintin once again pointed to “Antifa-type” organisations in light of plans to ban such groups.

In June, Defence Minister Theo Francken of the New Flemish Alliance (N-VA) also claimed, without providing evidence, that the opposition Workers’ Party of Belgium (PTB-PVDA) was responsible following property damage on the fringes of protests in Brussels.

PTB-PVDA supports the protests gaining momentum in Belgium against the government’s policies of militarisation and social spending cuts.

According to polls, the party is currently the second strongest in the country with 23% of the vote nationwide, and the strongest in the Brussels-Capital Region with 26%.

In Germany, the possibility of banning The Left (Die Linke) was raised by the influential mainstream newspaper Frankfurter Allgemeine Zeitung.

A recent editorial in the newspaper asked: “Why not ban Die Linke?”

Meanwhile, banning youth demonstrations is currently under discussion. As in Belgium, isolated violent incidents on the margins of peaceful protests are cited as justification, discrediting the demonstrations as a whole.

Federal Interior Minister Alexander Dobrindt is not only levelling blanket accusations against “left-wing groups” without providing evidence; he is also attributing instances of property damage to “agitators emerging from the migrant community”.

The Interior Minister of the state of Hesse, Roman Poseck, acknowledged that those detained on Saturday on assault charges were “predominantly German citizens”, but nonetheless claimed that they were “predominantly of migrant background”.

These statements therefore attribute responsibility for violence to leftists on the one hand, and to people of non-German origin on the other.

A representative from the Federal Ministry of the Interior under Dobrindt also attended a conference where White House Deputy Chief of Staff for Policy Stephen Miller equated anti-fascists (“Antifa”) broadly with terrorism and categorised them as “enemies of civilisation”.

According to an investigation by the online portal FragDenStaat, this representative was Christian Klos, head of the Public Security Directorate.

Klos reportedly appeared in Washington as part of a “morning panel” on “The Threat Landscape of Far-Left Terrorism”.

What he said there remains unclear: FragDenStaat reported that the Federal Ministry of the Interior refused to publish several preparatory documents related to the presentation, citing their classified status.

However, it is now known that the Interior Ministry took part in a preparatory workshop in the US in May with two officials at the “relevant specialist division level”.

In addition, the federal government confirmed in early October that a follow-up event to the Washington conference would be held this autumn.

The event’s focus will be the “sharing of professional experience among security and law enforcement agencies from various countries”, centring specifically on “manifestations, developments, and challenges in the field of violent left-wing extremism”.

The US Department of State had hosted a conference on 16 July with the participation of representatives from more than 60 countries across North and South America, Europe, and parts of Asia.

The focus of the conference was the “international resurgence of far-left political terrorism”.

Alongside Secretary of State Marco Rubio, Stephen Miller set the tone of the conference.

In a speech, Miller claimed that leftists were “fundamentally driven by envy, hatred, and malice”, adding that no one at anti-fascist demonstrations looked like a “normal human being”.

Federal Interior Minister Alexander Dobrindt has played a prominent role for years in crackdowns on left-wing organisations.

While serving as CSU general secretary in 2011 and 2012, his rhetoric caused astonishment even within his own party.

In August 2011, for instance, he demanded that authorities “examine whether proceedings to ban Die Linke should be initiated”.

In January 2012, he stated that he believed “in the medium term, we must make every effort to also launch proceedings to ban [the party Die Linke]”.

At the time, Gerda Hasselfeldt, then leader of the CSU parliamentary group in the Bundestag, expressed her surprise: “At present, I see no grounds for proceedings to ban Die Linke.”

Even after taking office as Federal Interior Minister, Dobrindt continued to stand out with striking rhetoric.

In June 2025, during the presentation of the Federal Office for the Protection of the Constitution report, he displayed graphs with different scales, implying that the number of “far-left extremists” in Germany exceeded that of right-wing extremists.

In December 2025, he suggested that “left-wing extremists” could engage in “espionage or sabotage” activities on behalf of foreign powers.

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Low EU gas stocks risk stoking global prices, IEA report warns

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The International Energy Agency (IEA) has stated that the global gas market could remain tight “until later in 2027” as European gas storage levels stand at their lowest point in a decade ahead of the winter season.

Presenting its “Global Gas Security Review 2026” report, the IEA noted that depleted storage inventories will heighten Europe’s reliance on global liquefied natural gas (LNG) supplies to meet peak demand, particularly in the event of a colder-than-expected winter.

“Under colder-than-average weather conditions and prolonged disruptions to LNG flows through the Strait of Hormuz, EU gas storage levels could drop to below 10% of working capacity by the end of March 2027,” the report said.

Depleted stock levels could intensify competition for the limited volume of flexible LNG cargoes with countries in Asia and South America that have limited storage options, putting upward pressure on prices this winter.

The IEA noted, “Low storage levels in Europe could also significantly increase gas injection requirements to replenish stocks through the summer of 2027, potentially extending tightness in the global market well into next year.”

With the effective closure of the Strait of Hormuz cutting more than 60 billion cubic metres of supply from Qatar and the United Arab Emirates, Asian and European prices have already reached their highest levels since the 2022-23 gas supply crisis.

The report stated that an increase in LNG supply, particularly from North America, alongside more flexible trading arrangements, has helped cushion the impact of the Hormuz supply shock.

The report forecasts that global LNG supply will drop in 2026 by a record 3%, or around 20 billion cubic metres, compared with 2025.

Global gas demand is expected to fall by roughly 1.5%, or nearly 65 billion cubic metres, driven by lost demand across the Middle East, declining industrial gas consumption in Europe, and power sectors switching from gas to coal across multiple Asian countries.

The IEA said, “These findings highlight the importance of strengthening international cooperation on gas supply security, even as global markets become more flexible.”

The EU was expected to fill its underground gas storage facilities to at least 90% ahead of the winter season.

However, after that requirement was relaxed because of the ongoing crisis, the average fullness rate stood at just 74.6% as of 1 November.

This shortfall was primarily driven by lower-than-normal inventories in Germany and the Netherlands.

The IEA observed that because storage levels for this time of year are at their lowest since 2013, the EU has become uniquely dependent on LNG shipments.

In the event of an exceptionally cold winter, EU storage fullness could drop below 10% by March, leaving the bloc vulnerable to “additional cold spells, technical failures, or other supply disruptions”.

However, the Paris-based energy security agency added that these challenges could extend well beyond the winter months.LNG

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Pro-Ukraine Republicans in US Congress dwindle after departures

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The number of influential Republicans advocating support for Ukraine in the US Congress is expected to decline following the midterm elections.

According to reporting by Politico, several senior figures, including former Senate Republican majority leader Mitch McConnell, are set to leave Congress.

Michael Sawkiw, head of the Congressional Ukrainian Caucus, described the departing lawmakers as “real heavyweights” among Ukraine’s supporters.

An unnamed adviser to a Republican member of the House of Representatives said these departures could reduce the number of comprehensive legislative bills drafted in Kyiv’s favour.

The adviser noted concerns that Congress may no longer retain a coalition capable of drafting legislation that could secure the approval of Donald Trump’s administration while simultaneously conducting back-channel contacts to persuade the White House.

New candidates keep military aid at arm’s length

Mitch McConnell had advocated providing military aid and sharing intelligence with Ukraine.

However, several candidates seeking the seats of departing Republicans remain distant toward Kyiv. Andy Barr, who launched a candidacy to replace McConnell, had voted against legislation supporting Ukraine.

Nevertheless, the report stated that Republicans could retain their roles as channels of communication with Trump and as providers of the majorities required to override a presidential veto.

The death of Senator Lindsey Graham, an architect of sanctions against Russia, was also reported to have caused grief among Ukraine supporters. The House member’s adviser pointed to Senator Katie Britt among Graham’s possible successors, noting that Britt had supported initiatives imposing restrictions on Russia.

According to the report, pro-Ukraine Republicans may attempt to block the White House’s agenda before the current congressional term concludes.

Concerns that Republican losses in the midterms could affect Ukraine aid and NATO had surfaced previously.

It is noted that if Congress curtails Trump’s domestic authority, he could turn his focus toward foreign policy. An unnamed NATO diplomat remarked that the US president’s posture could harden under such circumstances.

Other sources speaking to Politico suggested that Trump could respond to an electoral defeat by drawing down the American military presence in Europe, trimming contributions to the NATO budget, curbing the PURL programme involving weapons procurement for Ukraine, and pursuing closer ties with Russia.

Jennifer Kavanagh, an expert at the think tank Defense Priorities, pointed out that European nations would struggle to compensate for any reduction in US support across electronic warfare, air defence, intelligence, aerial refuelling, and logistics.

Race continues for House and Senate

In the US congressional midterm elections, voters will head to the polls to decide all 435 seats in the House of Representatives and 35 of the 100 seats in the Senate.

The outcome will determine which party holds the majority in both chambers of Congress for two years.

According to opinion polls cited by Reuters, Democrats appear to have a chance of winning a majority in the House of Representatives, whereas their odds of seizing control of the Senate are judged to be low.

It is noted that if Democrats secure a majority, they could open investigations into Trump, constrain spending priorities, and block various initiatives.

The US leader, however, will continue to retain broad powers over trade, foreign policy, and the federal bureaucracy.

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