A mega-merger of Deutsche Bank and Commerzbank may be getting closer. Talks between the two are gathering pace, according to reports in German media.
The German financial market may soon see the emergence of a new industry champion: if reports in the media are anything to go by, Deutsche Bank and Commerzbank are about to merge into Deutsche Commerz. With recent setbacks at both companies, the urgency for such a move has increased, the reports concluded.
With the current slowdown of economic growth in Europe and its biggest economy, both banks will struggle to reach their financial goals for 2019.
No Official Mandate Yet?
So far, even as the reports are showing an identical picture, details of the proposed deal remain unclear. The regulator is said to have given its go-ahead for talks and the contacts between the banks have intensified.
Still, the boards have not yet been informed about the merger plans and haven’t yet issued a mandate for official negotiations. Cerberus, a major Deutsche Bank shareholder, is supporting the merger plans.
