Deutsche, Commerzbank eye $2tln megabank

Credit: Reuters Studio
Published on March 18, 2019 - Duration: 01:17s

Deutsche, Commerzbank eye $2tln megabank

Germany's two biggest banks, Deutsche Bank and Commerzbank, are in talks over a merger, but unions say a deal could cost tens of thousands of jobs.

Julian Satterthwaite reports.


Deutsche, Commerzbank eye $2tln megabank

Germany's two biggest banks are talking about a merger.

Deutsche Bank and Commerzbank confirmed long-standing rumours on Sunday (March 17).

A tie-up would create a megabank behind only HSBC and BNP Paribas in Europe.

It would have about 2 trillion dollars in assets.

But both banks say talks will be slow, and the outcome uncertain: (SOUNDBITE) (English) DEUTSCHE BANK'S GLOBAL HEAD OF COMMUNICATIONS & CORPORATE SOCIAL RESPONSIBILITY, JOERG EIGENDORF, SAYING: "It is important to us that we will only engage in transaction if it makes economic sense.

Therefore, it needs a plan, especially a good integration plan." Germany's government is in favour.

It wants a national banking champion to support its export-led economy.

But plenty of analysts think there's little logic in a merger.

Deutsche emerged unscathed from the 2008 financial crisis, but has struggled ever since.

Commerzbank has also found it hard to generate profits.

A merger might just create a bigger bank with the same problems. Unions aren't keen either.

They say tens of thousands of jobs would be at risk in a deal that creates no added value.

Reuters sources say the boards of both banks will meet on Thursday to discuss the tie-up.

There will be a lot more talking before any deal is done.

You are here

Recent related videos from verified sources

Deutsche Bank Is Hurting, But Shareholders Aren't Giving Up--Yet 00:46
Credit: Wochit - Published 10 hours ago 

These Cities Have The Most Expensive Gas Prices 00:39
Credit: Wochit News - Published 13 hours ago 

Deutsche Bank CEO readies investment bank cuts as stock hits low 01:33
Credit: Reuters Studio - Published 15 hours ago 

Trump Demanded That His Financial Records Be Kept Private. Here's What The Judge Said 00:45
Credit: Wochit News - Published 1 day ago 

Trump Abruptly Ends Meeting With Democrats 00:31
Credit: Wochit News - Published 1 day ago 

Commerzbank open to M&A after Deutsche Bank talks collapse 01:20
Credit: Reuters - Business (Amazon FireT - Published 2 days ago 

Trump Tries In Court To Block Deutsche Bank From Giving Information To House Democrats 00:36
Credit: Wochit News - Published 2 days ago 

Easy Street! These Cities Offer the Best Quality of Life 01:31
Credit: Buzz60 - Published 3 days ago 

You might like