Banks: ECB likely to approve Commerzbank takeover despite concerns

Frankfurt. Despite some concerns about UniCredit's approach to Commerzbank, the European Central Bank (ECB) is likely to approve the takeover of the Frankfurt-based bank. In a confidential document obtained by Reuters, the ECB comes to the preliminary conclusion that there is "no reason to reject" the Italians' control takeover of Commerzbank.

UniCredit had surprisingly secured 48 percent of the shares in the Frankfurt bank with a share exchange offer - despite fierce resistance from its board. However, in the document, the ECB warns that a "challenging and lengthy" integration process lies ahead.

The German financial supervisory authority BaFin, in particular, is demanding a strategy from UniCredit to regain the trust of management, employees and politicians. The document was discussed in June in the ECB's supervisory body, which includes representatives of the financial supervisory authority within the central bank and the national supervisory authorities.

It was expected from the start that the European financial supervisory authority would approve UniCredit's takeover of Commerzbank, as the ECB has been supervising both institutions since 2014.