By Francesco Canepa LONDON (Reuters) - 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
ECB Nears Approval for UniCredit's Commerzbank Investment
By Francesco Canepa
LONDON (Reuters) - 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.
ECB staff are likely to complete their analysis of UniCredit's purchase of 29.9% of Commerzbank by early March, setting the stage for approval by the regulator's Supervisory Board later in the month, the source said.
The most recent briefing from the ECB's supervisory experts, which included different scenarios to evaluate the banks' solidity, was positive, the source added.
A spokesperson for the ECB declined to comment.
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.
A signoff from the ECB for UniCredit to own just shy of 30% in Commerzbank would clear a significant regulatory hurdle.
(Reporting by Francesco Canepa. Editing by: Elisa Martinuzzi and John O'Donnell)
