Friday, 22nd November 2024

Merger talks between Deutsche bank and Commerzbank collapses

Thursday, 25th April 2019

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.”