Germany’s Deutsche Bank and Commerzbank go public on merger talks

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Germany’s Deutsche Bank and Commerzbank go public on merger talks GlobeBusiness

Banners of Deutsche Bank and Commerzbank are pictured in front of the German share price index, DAX board, at the stock exchange in Frankfurt, Germany, Sept. 30, 2016.Deutsche Bank and Commerzbank confirmed on Sunday they were in talks about a merger, although both warned that a deal was far from certain and analysts questioned the merits of a combination.

Mr. Sewing also said that many factors could prevent a merger, and a Deutsche spokesman said the talks were expected to last for some time. For its part, Commerzbank described the outcome as open. The government, which holds a stake of more than 15 per cent in Commerzbank following a bailout, wants a national banking champion to support its export-led economy, best known for cars and machine tools.

While the banks had not publicly commented on merger talks until Sunday, Finance Minister Olaf Scholz last Monday confirmed that there were negotiations. The merged bank would have roughly €1.8-trillion in assets, such as loans and investments, and a market value of about €25-billion euros . Deutsche, the largest bank in Germany, Europe’s biggest economy, emerged unscathed from the financial crash but later lost its footing.German officials fear that a recession or big fine, for example, could derail the bank’s fragile recovery.

 

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