Commerzbank has agreed to enter formal takeover negotiations with UniCredit, marking a decisive end to months of resistance from the German lender's board.
The development signals a major shift in the long-running battle for control of Germany's largest bank, which had previously rejected the Italian group's unsolicited offer.
59%, driven by a fresh wave of share acquisitions under its ongoing offer.
UniCredit shares rose sharply in early European trading as investors priced in the likelihood of a successful acquisition.
The market reaction reflects growing confidence that the Italian lender can finally secure a controlling stake in Commerzbank, a deal that has been stalled by regulatory hurdles and board opposition.
The agreement comes as UniCredit prepares to announce the final outcome of its takeover bid later this week.
The Italian bank has steadily increased its ownership stake in Commerzbank to 47.59%, driven by a fresh wave of share acquisitions under its ongoing offer.