• The German government is considering increasing its stake in Commerzbank via state bank KfW to prevent a takeover by UniCredit.
  • UniCredit has formally launched a €37 billion takeover bid for Commerzbank, alarming Berlin.
  • Germany already owns 12% of Commerzbank from a bailout during the financial crisis.
  • The move would require several billion euros but could be justified by the bank’s role in financing Mittelstand companies.
  • Social Democrat Armand Zorn supports the idea as a last resort, while support from Christian Democrats is uncertain.
  • Losing Commerzbank would be another blow to Germany’s economy, already facing US tariffs and Chinese competition.

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