(Bloomberg) -- UniCredit SpA became a major shareholder in Commerzbank AG after buying the 4.49% stake held by the German government. Most Read from...
-- UniCredit SpA became a major shareholder in Commerzbank AG after buying the 4.49% stake held by the German government.UniCredit is paying €13.20 per share for the roughly 53.1 million shares, generating proceeds of €702 million for Germany, the country’s Finance Agency said in a statement on Wednesday. The Italian bank’s offer for the stake was a “significant outbid” of everyone else, it said.
“This first partial sale of the federal government’s stake heralds the completion of the successful stabilization and thus the exit” from Commerzbank, Finance Agency head Eva Grunwald said in the statement on Wednesday. “Commerzbank has shown to be standing firmly on its own feet again.” The share price of UniCredit has been rising more quickly than Commerzbank’s over the past couple of years. That has lifted the Italian bank’s price to tangible book ratio — a valuation metric — to 1.05, roughly double the 0.54 for Commerzbank, according to data compiled by Bloomberg.
The tailwind for European banking industry is set to wane, however, as the ECB has started lowering interest rates. Bank shares in the region have largely stagnated since the first ECB cut this year in June.
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