Germany's Cartel Office approves UniCredit stake in Commerzbank

Germany's Federal Cartel Office on Monday approved Italian bank UniCredit's acquisition of a major stake in German rival Commerzbank.

Andreas Mundt, head of the Bonn-based body, said the 29.99% stake has been cleared as "other significant competitors are active in all areas."

The acquisition "will strengthen UniCredit's market position in the private and corporate customer business in Germany," Mundt added.

UniCredit notified the Federal Cartel Office of its acquisition in February, with the European Central Bank's supervisory authority raising no objection to the move in March.

The decision marks another step for UniCredit chief executive Andrea Orcel in his efforts to take over Germany's second-largest bank, after the German government's partial exit from the bank in September.

The Italian bank controls around 28% of Commerzbank shares, with 9.5% coming directly via shares and 18.5% via financial instruments.

With a 30% stake in Commerzbank, UniCredit would be obliged to submit a purchase offer.

However, a decision on the merger is not expected this year, with the German government opposing the move.

Commerzbank is an important partner for many German businesses. The bank recently announced intentions to become more profitable, with 3,900 jobs to be cut.