The German government does not see legal powers it could use to prevent the takeover of Commerzbank (CBKG.DE) by Italy's UniCredit (CRDI.MI), two government sources told Reuters on Tuesday.
The Foreign Trade and Payments Ordinance - which in certain cases can be used to prevent takeovers from non-EU countries - doesn't apply because banks are under the supervision of the European Central Bank, the sources said.
Categorising the German bank as "critical infrastructure" - which could also give the government more sway - is not a realistic option either, one of the sources added.
Asked on Tuesday how a UniCredit takeover of Commerzbank might be prevented, Finance Minister Christian Lindner said: "This is a matter for the board of managing directors and the supervisory board of Commerzbank."
The decision will now be for the two banks, the sources said.
Commerzbank supervisory board members on Tuesday voiced fierce opposition to a takeover, vowing a long fight with UniCredit's CEO Andrea Orcel if necessary.
Germany, which owns a 12% stake in Commerzbank, will not sell any more shares for now and the bank's strategy is "geared towards independence," the country's Finance Agency said on Friday, in the clearest sign yet that Berlin doesn't currently favour a takeover of the nation's No. 2 lender.
UniCredit, whose CEO has said he would be interested in a tie-up between the banks, said on Monday it was preparing to increase its stake in Commerzbank to 21% - a move German Chancellor Olaf Scholz called "an unfriendly attack".
