UniCredit has announced plans to increase its stake in Commerzbank, where it is already the largest shareholder with just under 30%. The move is significant not only for involving two major European banks, but also because it comes in open opposition to the German government.

Berlin, which also holds a stake in Commerzbank, has made clear it does not support further expansion by the Italian lender. Chancellor Friedrich Merz stated that the government wants to preserve the bank’s independence, while officials warned that a hostile takeover would be unacceptable, especially given Commerzbank’s systemic importance.

Although Germany cannot directly block the deal, its role as a shareholder means UniCredit is unlikely to secure full control without reaching an agreement.