Deutsche Bank set to announce merger talks with Commerzbank - source

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A merger has long been the subject of speculation

Frankfurt - Deutsche Bank was set on Sunday to confirm merger talks with fellow German lender Commerzbank, according to a person with knowledge of the matter, an indication of progress in efforts to combine the two businesses.

Formal disclosure of talks increases the chances of concluding a tie-up between the nation's two largest banks. and has been pushed for by the German government amid concerns about the health of Deutsche. Earlier this month a person with knowledge of the matter told Reuters that the management board of Deutsche had agreed to hold talks with Commerzbank on the feasibility of a merger."But there is no guarantee that there will be a deal in the end," the person said.

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