Commerzbank, Deutsche hold tentative talks on merger deal

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Commerzbank, Deutsche hold tentative talks on merger deal

After months of speculation and amid a growing government pressure, Deutsche bank’s management board had agreed to hold a potential merger talks with its arch-rival Commerzbank, a whistleblower familiar with the talks revealed on Saturday, the 9th of March 2019.

According to at least two sources familiar with the subject matter, the first unofficial contacts had already been taken place among a very small group of executives and Deutsche bank’s management board had authorized the mandate more than a week ago.

One source added that the talks had been at a very early stage, confirming a news report published earlier on Welt am Sonntag Newspaper, while spokesman of both Deutsche Bank and Commerzbank declined to comment immediately on the subject matter.

Under the supervision of German Finance Minister, Olaf Scholz, who had always emphasized the significance of stronger banks, possibility of a merger between Germany’s two biggest lenders had been whistling in the wind for months.

Protagonists of a potential merger had been saying that a tie-up might give rise to a combined entity, with an equity market value of over $27 billion (24 billion euros), based on the Friday’s (March the 8th) closing shares price.

Nevertheless, the Welt am Sonntag newspaper report also revealed that both of the banks, which were rivals for decades, had been reacting on intense government pressure and a decision regarding the prepotent merger was expected next week.