Commerzbank and Big M have a checkered history

(Updated September 26 item with new entries, updated graphics)

FRANKFURT, Dec 18 (Reuters) – UniCredit Bank has raised its stake in Commerzbank to 28% through a new derivatives contract as its takeover of smaller domestic peer Banco BPM faces obstacles.

Like some other banks, Commerzbank has had a rocky history of large-scale mergers and acquisitions over the years.

Here are some key moments:

The bank was founded in Hamburg and later moved to Berlin. It moved to Frankfurt in 1970 and became one of Germany’s leading banks, focusing on retail and corporate clients.

The business expanded to London and New York as well as other European capitals.

Agreed to acquire Dresdner Bank, one of Germany’s largest banks, from insurance company Allianz in a $14.5 billion deal.

Commerzbank was the first German bank to seek funding from the government during the global financial crisis.

In a bailout, Germany took a 25% plus one share stake in Commerzbank in exchange for an additional 10 billion euros ($11.13 billion) capital injection.

The European debt crisis continues.

Commerzbank begins a multi-year restructuring.

US investor Cerberus has taken a stake, controlling 5% of the German bank’s voting rights.

UniCredit told Berlin it is interested in eventually merging with Commerzbank, which would create one of Europe’s largest banks, Reuters reported.

BNP Paribas’ then-chairman Jean Lemierre quashed rumors that the bank was interested in partnering with Commerzbank.

Commerzbank exits the blue-chip DAX index.

Deutsche Bank called media reports “fiction” and suggested Germany’s largest lender could seek to partner with Switzerland’s UBS Group AG or Commerzbank AG.

Cerberus said it was open to a merger between Germany’s two largest banks.

Deutsche Bank and Commerzbank held merger talks but called it off weeks later.

UniCredit has hired investment bankers to advise it on a potential takeover of Commerzbank.

Commerzbank’s supervisory board approved plans to cut thousands of jobs and close a fifth of its branches following a failed merger with Deutsche Bank.

Commerzbank changed its attitude and said it would not sell its Polish subsidiary mBank, citing poor market conditions.

Cerberus called on Commerzbank to appoint two supervisory board nominees, cut costs and adopt a new strategy.

Commerzbank’s chairman and chief executive resign at Cerberus’ request.

Commerzbank’s new chief executive, Manfred Knof, wants to cut 10,000 jobs and close hundreds of branches as part of a strategic overhaul.

Knopf said Commerzbank was working hard to maintain its independence.

Sources familiar with the matter told Reuters that UniCredit CEO Andrea Orcel approached Nove about a potential deal ahead of the war in Ukraine in early 2022.

Commerzbank returns to profitability and rejoins the DAX index.

On Jan. 23, Nove downplayed the possibility of a merger with Deutsche Bank, saying he was working to maintain the bank’s independence.

On May 15, Nove said Commerzbank wanted to “downplay” merger speculation and focus entirely on its current strategy, which was the “best prerequisite” to remain independent.

On September 3, the German government stated that it planned to reduce its 16.5% stake in Commerzbank as it stabilized again after years of bailouts.

Commerzbank said on September 10 that Nove’s contract will expire in December 2025 and he will not seek an extension as the German government begins to sell part of its shares.

On September 11, a person familiar with the matter said that UniCredit approached Commerzbank to discuss merger negotiations after Commerzbank purchased 9% of the shares. Commerzbank management discusses how to maintain lender independence.

According to Reuters, on September 13, German government officials held talks with UniCredit bankers.

On Sept. 16, Nove rejected UniCredit’s offer, saying he had his own plans for the bank and wanted the bank to remain independent.

On September 17, Bettina Orlopp, finance director of Commerzbank, said that the German government should retain its shares in commercial banks.

On September 18, two people familiar with the matter said that Commerzbank was preparing to put Olop in charge of negotiations with UniCredit Bank.

On September 20, Germany stated that it would not sell any more shares in Commerzbank for the time being.

On September 23, German Chancellor Olaf Scholz called UniCredit Bank’s move to acquire a 21% stake in Commerzbank “an unfriendly attack.”

On September 24, the bank announced that Orlopp would take over as CEO.

On September 26, Olop said that as Commerzbank improves its independence strategy, Commerzbank and UniCredit Bank will hold the first round of negotiations on September 27.

On Oct. 1, Orlop told employees on her first day as CEO that she wanted the bank to remain independent.

The collapse of Germany’s governing coalition on Nov. 6 raised questions about whether the government can still resist UniCredit’s approach.

Commerzbank is considering acquiring a mid-sized German bank as part of its defense strategy, sources told Reuters on November 12.

On November 25, UniCredit launched an acquisition of domestic peer Banco BPM, and Orcel stated that the acquisition would take precedence over any potential move for Commerzbank.

On December 18, UniCredit announced that it would increase its stake in Commerzbank to about 28% through derivatives.

(Reporting by Tom Sims, John O’Donnell and Valentina Za; Editing by Alexander Smith, Barbara Lewis, Elaine Hardcastle and Tomasz Janowski)