UniCredit eyeing Commerzbank merger if Deutsche bank talks fail

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UniCredit eyeing Commerzbank merger if Deutsche bank talks fail

On Thursday, the 4th of April 2019, Germany’s largest lender, the Deutsche bank had been under intense pressure to conclude a decisive decision on a tie-up with Commerzbank, as Italy’s UniCredit had surfaced as a potential alternative bidder for the German financier.

At least two people with knowledge regarding the subject matter had been quoted saying on Thursday (April 4th) on conditions of anonymity that the UniCredit, an Italian multinational lender based on Milan, would be exploring a potential merger with Commerzbank if talks with Deutsche bank could not conceive fruits.

Apart from that, the spokesmen also added that the Italian lender would not be breaking their intent at this moment amid an ongoing merger talk between Commerzbank and Deutsche Bank. On March 17th, the Commerzbank and Deutsche bank had announced talks over a potential merger deal on government initiative, as Deutsche bank alone could face heavy financial penalty and even sanctions over allegations of processing over 200 billion euros to Danske bank’s Estonian branch on suspicious payments.

So far, talks were proceeding cautiously, at least two spokesmen familiar with the situation unveiled on Thursday (April 4th), however UniCredit’s intent on Commerzbank merger could accelerate the process, though a potential merger between two of the largest German lenders had been met with rigid resistance from labor unions alongside lawmakers in the wake of a havoc-scale job cut and financial reforms.