Deutsche, Commerzbank tentatively talk about merger after months of speculation: source

FRANKFURT: The management board of Deutsche Bank has agreed to hold talks with rival Commerzbank on the feasibility of a merger, a person with knowledge of the matter told Reuters on Saturday.

Welt am Sonntag reported that both banks were reacting to pressure from the government, which expects a decision on the merger in the coming weeks.The two lenders, which flirted with a merger in 2016 before focusing on restructuring, have struggled to return to sustainable profitability since the global financial crisis.The government holds a stake of more than 15 percent in Commerzbank following a bailout and Deutsche Bank's shares have fallen 73 percent over the past five years.

Its chief executive, Christian Sewing, has said publicly in recent months he was focused on restoring profitability before taking on a complicated merger project.Commerzbank's chief, Martin Zielke, has been more open to the idea of a tie-up, a person with knowledge of his thinking said. Last month, he said speculation about a merger was"understandable".

Ratings agencies, which have cut Deutsche Bank's credit ratings to the lowest among its major competitors, have warned that a merger would be risky and difficult to execute.German officials have been worried about Deutsche since 2016 when the bank was negotiating a hefty fine with the U.S. Department of Justice for its role in the mortgage crisis.

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Deutsche Bank management board agrees to Commerzbank merger talks: sourceThe management board of Deutsche Bank has decided to hold talks with rival Commerzbank to examine the feasibility of a merger, a person with ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Deutsche Bank, Commerzbank have no mandate for merger talks: sourcesDeutsche Bank and Commerzbank managers have no official mandate for merger talks, two people with knowledge of the matter said on Friday.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Deutsche Bank, Commerzbank CEOs resume talks over potential merger: FocusDeutsche Bank and Commerzbank's chief executives have resumed talks over a potential merger of Germany's two biggest lenders, Focus magazine ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

US House to hold hearing on Sprint, T-mobile proposed mergerU.S. House lawmakers plan to hold a March 12 hearing to review a proposed US$26 billion merger of T-Mobile US Inc and Sprint Corp with the ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Scarlets confirm merger with Ospreys is 'off the table'Scarlets have confirmed that a proposed merger with fellow Welsh side Ospreys is 'off the table' after their Pro 14 rivals pulled the plug on a ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

US telecoms regulator stops clock on Sprint, T-Mobile merger reviewThe U.S. Federal Communications Commission said on Thursday it has halted the informal 180-day 'shot clock' on the review of the merger of ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Deutsche Post plays down impact of trade tensions on its businessDeutsche Post DHL Group said it expected slower profit growth this year than analysts predicted but did not see a major impact on global trade ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »