ECB poised to approve UniCredit’s investment in Commerzbank, source says

The European Central Bank is poised to give Italy’s UniCredit the green light to build up its stake in German rival Commerzbank, a person familiar with the matter told Reuters, a move that could pave the way for Europe’s biggest cross-border banking deal since the global financial crisis.

Why it matters

UniCredit CEO Andrea Orcel, a prolific dealmaker, shocked Germany’s corporate and political establishment by snapping up shares in Commerzbank in September. He went on to build up the holding in the face of widespread German opposition while pressing for a full tie-up. The ECB signing off on UniCredit owning just shy of 30% in Commerzbank would clear a significant regulatory hurdle.