On Thursday, the 25th of April 2019, German ambition of creating a domestic banking champion by setting off a merger between the nation’s top two lenders, Deutsche bank and Commerzbank had tumbled, as both of the lenders had denied to proceed with a merger deal in the wake of growing risks, restructuring costs alongside capital demands.
Questions were raised following Thursday’s report over the future of those two Frankfurt-based rivals, as a six-week-long tentative talks between the top two German lenders over a potential merger deal had failed to bear fruit, while Commerzbank investors had been appeared to be pinned over optimisms of a new merger deal with other eurozone financial organizations.
The latest decision to dump the talks came after a final early morning meeting on Thursday (April 25th) between the Commerzbank Chief Executive Martin Zielke and his Deutsche Bank counterpart Christian Sewing. Followed by the ending of a one and a half month long merger talk, both of the CEOs had been quoted saying that a merger deal could not be able to create substantial scale of benefits to neutralize the risks alongside costs of a merger, while the employees’ union of both of banks had been opposing the merger over risks of losing more than 30,000 jobs and investors seemed to be downbeat over the success of a merger between the two rival German banks.
At the later part of the day, a spokesman for the scandal-sickened largest bank of Germany, Deutsche bank said, “Deutsche Bank will continue to review all alternatives,” while a senior Commerzbank manager had been quoted saying that there were multiple bidders in the wings.