News Contact Us

Deutsche Bank to reportedly begin formal merger talks with Commerzbank

Author : Saif Ali Bepari | Published Date : 2019-03-19 

Deutsche Bank, Europe’s prominent financial institution, is apparently set to announce merger talks with Commerzbank. It has been reported that the two largest banks in Germany are gaining pace and the planned formal disclosure of talks between them has increased the probability of a successful tie-up.

For the record, Deutsche bank has a market value of around 16 billion euros and Commerzbank holds a market valuation of over 9 billion euros. The merger has long been a subject of speculation and has been pushed by the German government owing to the health concerns regarding Deutsche, which has struggled to gain feasible profits since 2008 financial crises.

Reportedly, the German government still holds more than 15% of stake in Commerzbank following a bailout. According to the German Finance Minister Olaf Scholz, there are negotiations even though the banks have not commented anything publicly on the merger talks.

Sources with knowledge on the matter have mentioned that the supervisory boards of both the banks are soon to hold long-planned meetings. In these meetings, it is expected that the status of merger negotiations would be discussed.

The Verdi labour union in Germany has opposed a merger between the two banks strongly, saying that Deutsche and Commerzbank together employ 140,000 people worldwide and a merger would present the risk of losing almost ten thousand jobs. Further, the merged group would supposedly become an appealing target for hostile takeover from a foreign rival.

According to Deutsche Bank’s chief executive officer Christian Sewing, the bank would prefer more time to get stabilized before proceeding to merger. A successful tie-up of the two renowned banks would create the fourth largest lender in Europe, with net worth of about 1.81 trillion euros, including assets like investments and loans. In 2016, the International Monetary Fund had termed Deutsche Bank as being the biggest risk to the financial system.

About Author

Saif Ali Bepari

Saif Ali Bepari

A qualified Computer Science graduate, Saif Ali Bepari, armed with more of an inclination toward writing than coding, commenced his journey in the content industry as a freelancer. Currently penning down content for fractovia.org and a couple of other portals, Saif has also tinkered with creative writing, technical writing, blog writing, and copywriting. He can be contacted at- [email protected] | https://twitter.com/Saif_B17

Related News

Co-working firm Spacious the latest in WeWork’s acquisition spree

Published Date: 2019-08-29         Author: Saif Ali Bepari

New York-based co-working business, The We Company, formerly known as WeWork, has today announced its acquisition of rival start-up Spacious. The company, formed three years ago, is focused on converting restaurants closed during the day into efficient spaces for co-working. WeWork is a part of many... Read More

HAPSMobile wins federal approval to fly unmanned aircraft above Hawaii

Published Date: 2019-08-09         Author: Saif Ali Bepari

The development of HAWK30 focuses on providing an enhanced stratospheric telecommunication platform Japan based HAPSMobile- a subsidiary of SoftBank Corp., has reportedly confirmed that it has received an Authorizing Certificate from US Federal Aviation Administration to fly HAWK 30, a solar oper... Read More

FEMSA to ink joint venture deal with Raizen Conveniencias in Brazil

Published Date: 2019-08-07         Author: Saif Ali Bepari

Mexico based Fomento Economico Mexicano (FEMSA), a leading retail and beverage company, has reportedly announced that it will sign an agreement with Raizen to enter into a 50-50 joint venture. The collaboration aims at creating a powerful platform for FEMSA in the convenience store market in Brazil ... Read More

© 2020 Fractovia. All Rights Reserved