UniCredit has secured the approval of the European Central Bank (ECB) for stake acquisition of up to 29.9% in Germany’s Commerzbank. The Italian banking major believes that this approval highlights its “financial strength and regulatory compliance”.

The European Central Bank has given UniCredit the green light to buy up to 29.9% of Commerzbank , the Italian bank said, adding it would likely wait until next year before deciding whether to pursue a full takeover.

UniCredit SpA cleared an important hurdle for a potential takeover of Commerzbank on Friday, but it also raised fresh doubts whether the deal will actually ever happen.

The Italian bank said it had received authorization to increase its holding in the potential takeover target to up to 29.9%.

Commerzbank said on Friday that the European Central Bank's authorization for UniCredit to increase its stake in the German bank to just under 30% does not change the "fundamental situation".

Italian banking giant UniCredit announced on Friday it had received approval from the European Central Bank (ECB) to increase its stake in Commerzbank,

The European Central Bank (ECB) has authorized Italian banking group UniCredit SpA to increase its direct stake in German lender Commerzbank to 29.9%, UniCredit said on Friday. UniCredit said there are still many factors that will determine any further steps and their associated timeline.

The European Central Bank has given UniCredit approval to buy up to 29.9% of Commerzbank, the Italian bank said on Friday, potentially paving the way for CEO Andrea Orcel to pursue a takeover of Germany's second-biggest listed bank.