Commerzbank announced on Tuesday that Bettina Orlopp would become its new chief executive, succeeding Manfred Knof. Orlopp, who currently serves as the bank’s chief financial officer, is anticipated to oppose a potential takeover by Italy’s UniCredit.
The German bank stated that Orlopp will take over from Knof, whose contract expires at the end of 2025, “in the near future.” People familiar with Orlopp’s stance indicated that she does not support a merger with UniCredit, which aims to become Commerzbank’s largest shareholder with a potential 21 percent stake, pending regulatory approval. UniCredit presently holds a 9 percent stake.
Sources stated that key arguments against the UniCredit takeover include concerns that a change in control could disrupt Commerzbank’s lending to German small and medium-sized enterprises (SMEs). Additionally, integrating the two companies could be a lengthy process. The German government has already expressed opposition to the acquisition.
In a statement on Tuesday, Orlopp, a former McKinsey partner who joined Commerzbank a decade ago, acknowledged the significant challenges the bank faces but committed to successfully navigating through them. She will continue as chief financial officer until a successor is appointed. Michael Kotzbauer, head of Commerzbank’s corporate client unit who shares Orlopp’s apprehensions about the takeover, has been named deputy chief executive.
Commerzbank Chair Jens Weidmann described Orlopp and Kotzbauer as the “co-architects” of the bank’s strategy until 2027, hailing Orlopp as the ideal successor.
The situation escalated on Monday when UniCredit announced it had secured an additional 11.5 percent of Commerzbank’s shares through derivatives positions, contingent on regulatory approval to exceed a 10 percent stake. German Chancellor Olaf Scholz criticized UniCredit’s acquisition efforts, describing them as “unfriendly attacks” and emphasizing the German government’s clear opposition.
UniCredit stated it was keeping its options open and might maintain its 9 percent stake, sell it, or increase it further, depending on discussions with Commerzbank’s management and supervisory boards as well as other stakeholders in Germany.
Insiders believe that UniCredit’s preferred scenario likely involves a full takeover and merger with its German subsidiary, HypoVereinsbank.
Manfred Knof joined Commerzbank in 2021 from Deutsche Bank following a contentious internal conflict that led to the resignation of both the chair and chief executive. During his tenure, Knof implemented cost-cutting measures, including eliminating 10,000 jobs in Germany and closing half of the bank’s branches. Commerzbank’s share price has since tripled, buoyed by increased dividends and the initiation of the first share buybacks in the bank’s 154-year history.