UniCredit plans bid for Commerzbank | Calamatta Cuschieri

Today’s article gives an overview of the Maltese, European and U.S. markets on Wednesday, together with news about rival multi-billion-euro bid from UniCredit

UniCredit SpA is preparing a rival multi-billion-euro bid to take control of Commerzbank AG
UniCredit SpA is preparing a rival multi-billion-euro bid to take control of Commerzbank AG

The Maltese market closed in the green on Wednesday, with MSE Equity Total Return Index ending the session 0.192% higher, to 9,428.022 points. Best performer was GO plc adding 2.08% to close at 4.9, followed by International Hotel Investments plc which was up 2% to close at 0.765. HSBC Bank Malta plc closed list of gainers with 1.25% increase to close at 1.62. Biggest faller was Malta Properties Company plc, it lost 3.45% to close at 0.56, followed by MIDI plc which shed 3.17% to close at 0.61. Malita Investments plc slid 2.30% to 0.85, while Bank of Valletta plc lost 1.43% to 1.38. BMIT Technologies plc, PG plc, Medserv plc, Malta International airport plc and Mapfre Middlesea plc were active but closed unchanged.

Stocks in Europe climbed for a fourth straight session on Wednesday, propped up by positive sentiment about a potential U.S.-China trade deal, hopes of a smoother Brexit and strong economic data in China and the Eurozone. The Stoxx Europe 600 was up 0.73% to close at 388.92. FTSE 100 rose 0.36% to 7,418.28, meanwhile Germany’s DAX added 0.83% to 11,954.40 and France’s CAC 40 also was up by 0.19% to 5,468.91.

U.S. stocks were in green on Wednesday, following reports that Washington and Beijing were approaching a final trade deal. The S&P 500 was up 0.21% to around 2,873.40. The Dow Jones Industrial Average advanced 0.15%, to 26,218.13. The Nasdaq Composite rose 0.05% to 7,895.55.

UniCredit plans bid for Commerzbank

UniCredit SpA is preparing a rival multi-billion-euro bid to take control of Commerzbank AG, as Deutsche Bank AG is facing troubles with its move to buy its rival German lender.

UniCredit has been interested in a deal with Commerzbank for several years and approached German officials about a tie-up in 2017, however, the Italian bank decided not to make an offer at the time, in part due to political opposition in Germany to cross-border banking deals, but also because the Milan-based lender was restructuring its own business. 

Any deal between UniCredit and Commerzbank would need approval from the German government, the Frankfurt-based lender’s biggest shareholder with a 15 per cent stake.

If the talks between Commerzbank and Deutsche do fall apart, UniCredit is unlikely to make a move immediately, instead preferring to give officials in Berlin time to reassess their options.


This article was issued by Nadiia Grech, junior trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.