Commerzbank names new CFO amid UniCredit approach

Commerzbank CBK on Thursday named Carsten Schmitt as its new chief financial officer, a crucial role at Germany's No. 2 lender as it seeks to fend off an approach by Italy's UniCredit UCG for a tie-up.

The job became vacant after the previous CFO, Bettina Orlopp, assumed the role of chief executive officer, a promotion that came as the bank's board deemed her better placed to negotiate with UniCredit.

Schmitt previously served as Executive Vice President of Group Strategy and M&A at Danske Bank DANSKE. Before that, he worked for Commerzbank in various positions for more than 20 years, most recently heading the group finance segment from 2019 to 2021.

The handover is planned to be completed by spring 2025 at the latest, said Commerzbank.

The new CFO will play an important part in reshaping the bank's tweaked strategy, which it plans to present in February.

Italy's No. 2 bank has been pressing for a tie-up after snapping up a hefty stake in Commerzbank in September, while the German company has been honing its defence as it seeks to remain independent.

UniCredit's move is the most ambitious attempt yet at a pan-European bank merger, but it faces considerable hurdles.

Commerzbank's management, employees and German Chancellor Olaf Scholz have all voiced opposition to a potential takeover, but at least one big investor and some business leaders favour talks.

UniCredit CEO Andrea Orcel, who has long held an interest in a tie-up with Commerzbank, has said a combination would be the best outcome although he has not ruled out walking away.