ECB to ask Deutsche Bank to raise funds for Commerzbank merger: source

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 34 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 17%
  • Publisher: 92%

Business News News

Business Business Latest News,Business Business Headlines

ECB to ask Deutsche Bank to raise funds for Commerzbank merger: source GlobeBusiness

The demand could complicate a bid to create Europe’s third-largest bank from Germany’s top two lenders, Deutsche and Commerzbank, who have struggled to recover since the financial crisis.Government officials, led by Finance Minister Olaf Scholz, have pushed for a merger to create a national banking champion and end questions over the banks’ future.

A merged entity could need up to 10 billion euros of fresh capital because of restructuring costs and the fact that losses on investments could be triggered by a tie-up. A deal would see Berlin become a shareholder in the combined group. Germany currently holds a 15 percent stake in Commerzbank after a bailout during the financial crisis.The banks announced on March 17 that they were in talks to merge and a preliminary decision on whether they want to go forward with a merger is expected within days.

UniCredit could explore a merger with Commerzbank if talks with Deutsche fall through, two people with knowledge of the matter said on Thursday.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in BUSİNESS

Business Business Latest News, Business Business Headlines