Deutsche Bank and Commerzbank CEOs to resume talks on potential merger

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Deutsche Bank and Commerzbank CEOs to resume talks on potential merger

On Friday, the 8th of March 2019, a Focus Magazine report revealed that the Chief Executives of Commerzbank and Deutsche Bank had resumed a talk over a potential merger between two of the largest lenders of Germany. Never the less, there had been looming uncertainties and controversies over latest leg of talks between the two CEOs, as one of the sources familiar with the talk told that the top managers of these two biggest banks of Germany had no mandate from their management boards and respective supervisory for any discussion of a merger, while another source with direct knowledge regarding the talks had said the CEOs had received green signals from their managements to go ahead with the negotiation for reaching a potential merger.

According to the Focus Magazine report, at least one spokesman of Commerzbank with knowledge about the talks said, “There is no official mandate for merger talks with Commerzbank,” adding that there had been no recent discussion at the supervisory board of the Commerzbank about creating a merger with its largest rival.

Although, spokesmen for both Deutsche Bank and Commerzbank declined to comment on the subject matter, the Focus Magazine report had addresses that the Deutsche bank CEO, Christian Sewing and Commerzbank CEO, Martin Zielke had been in intense talk for some days to sew a potential merger in the face of potential financial penalties ahead of Deutsche bank due to its involvement with a $200 billion money laundering scandal, processed by two Deutsche Bank officials in to the Estonian Branch of Danske bank.

Following the reveal of the scandal, pressure has been mounting over Deutsche bank to create a merger with any of larger German banks including its arch-rival Commerzbank and Danske bank had been told to call off all of its Estonian branches.