Deutsche Bank and Commerzbank confirm merger talks
Over the weekend, Germany's largest lenders confirmed it was in merger talks with Commerzbank over the weekend, which sent the banks’ stocks higher. The German government holds a 15% stake in Commerzbank.
Deutsche Bank and Commerzbank confirmed they were in talks about a merger, shares of both banks jumped more than 3 percent on the news.
Stocks impacted: Deutsche Bank (DBK), Commerzbank (CBK)
According to Deutsche Bank’s statement, the management board of the bank has decided to review strategic options in light of arising opportunities. At the same time, it cautioned that there was no guarantee of a deal. The merger would help consolidate Germany's retail lending market by creating a single bank with combined assets of €1.9 trillion and 150,000 employees. The announcement about merger talks prompted labor union concerns about possible job losses. There are also doubts that getting bigger will help to resolve Deutsche Bank's problems with profitability. As a reminder, the lender posted an annual profit last year for the first time since 2014.
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