Deutsche and Commerz: Investor Seeks Merger
Talks about a merger between Deutsche Bank and Commerzbank have been kindled by powerful political figures. But they are not alone – an overseas investor is also said to favor a German champion.
German Finance Minister Olaf Scholz is said to have ordered the regulator BaFin to study a merger between the two biggest German banks. But the government is not alone in its wish to create a new powerhouse.
Cerberus, a powerful U.S. investor, which holds stakes in both firms, also seems to back the idea, according to a report in Germany's «Handelsblatt».
Create «Deutsche Commerz»
The investor came to the conclusion that a merger would be in its best interest because of the sluggish performance of the banks’ shares, the modest business prospects at Deutsche Bank and the challenges of the digital transformation, where size may be of vital importance.
Cerberus believes all those factors mean that a merger to create «Deutsche Commerz», as the project has been dubbed, is a meaningful exercise.
