A customer enters a Commerzbank branch on Tuesday, August 6, 2024 in Berlin, Germany.
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Shares in Commerzbank rose sharply at the open on Wednesday after UniCredit acquired a 4.5% stake in the Frankfurt-based bank from the German government.
As of 8:21 a.m. London time, Commerzbank shares were up 18%.
The stake purchase marks the first step in Berlin’s exit from the German bank. The German government said it had sold about 53.1 million shares of Commerzbank, or about 4.49% of its total 16.49% stake, to UniCredit for about 702 million euros ($775 million).
The German government said it remains Commerzbank’s largest shareholder even with a 12% reduction in its shareholding.
“Commerzbank has once again proven that it can stand on its own feet. With the first partial sale of this investment, it will mark the successful stabilization of the investment bank and thus the exit of the federal government,” said the head of the Federal Financial Services Agency.
This breaking news story is being updated.
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