Merger talks between Deutsche bank and Commerzbank collapses

Merger talks between Germany’s top two lenders, Deutsche Bank, and Commerzbank ended in failure bowing to shareholder pressure and employee resistance, a person with knowledge of the matter said on Thursday.

Both lenders have spent six weeks discussing a deal that would create a lender with €1.8tn in assets and 140,000 employees.

Commerzbank said in a statement: “After careful analysis, the management board of Commerzbank has concluded today that a combination with Deutsche Bank would not have created sufficient benefits to offset the additional execution risks, restructuring costs and capital requirements associated with such a large-scale integration. As a result, the two banks have decided to discontinue discussions.”