2 Banks are on Track

2 Banks are on track

Jörg Eigendorf, Head of Communications, Germany's largest bank, Deutsche Bank, said they would realize that merger with Germany-based Commerzbank would be economically meaningful.


Jörg Eigendorf, Head of Communications at Deutsche Bank, told reporters in Frankfurt that the talks with Deutsche Bank on the merger of Commerzbank were discussed.

"We will do the merger with Commerzbank only when it is economically meaningful. This is important to us." Eigendorf said that there is a need for a plan, especially an integration plan.

Eigendorf said that they are evaluating this with Commerzbank, the preliminary talks between the two banks made the end of the open, they will make a decision when the result said.

Eigendorf emphasizes that the preliminary talks would take time, "comes before speedyness." said.

Eigendorf said that Deutsche Bank, a leading bank in Germany and Europe, is a global bank and will remain so, and that it can expand its leadership position with Commerzbank.

In recent months, German media reported that the government was looking for ways to facilitate the merger between Deutsche Bank and Commerzbank.

German press, Christian Sewing, Chairman of the Board of Deutsche Bank, and Martin Zielke, Commerzbank Chairman of the Board of Directors, met last week to discuss the merger, Deputy Prime Minister and Finance Minister Olaf Scholz said that the two German banks had been negotiating for the merger. confirmed.

The German government, Deutsche Bank, has the largest market share in Germany, due to developments such as prolonged trade wars, political uncertainties, fluctuations in financial markets, increased debt level of companies, Brexit uncertainty, Italy's debt burden, Eurozone banking sector weakness. worries about the future.

Previously, the merger of two banks came up, but the negotiations had failed. While the momentum of the growth of the German economy and the situation of the Italian banking sector were in the middle, it was expected to make radical decisions for the German bank this year.

In recent months, the German government has increased its support for the merger of two banks after these developments.

If the two banks merge, their total assets will be the second largest bank in Europe after HSBC Holdings and France's BNP Paribas.

Developments in technology bring new players to the banking sector, while more than 800 banks including regional and foreign banks operate in Germany, all of which are trying to capture Deutsche Bank's share in the market. If the two banks merge, they will have a client base that will enable them to be one of the five individual customers in the country to be theoretically profitable.

The merger of Deutsche Bank and Commerzbank is expected to support the export-oriented German economy, reduce costs and bring competition with the US and UK-based international banks, while according to some experts, the bank will become bulky due to its size.

Deutsche Bank announced a 409m-euro loss in the fourth quarter of last year, while Commerzbank announced a profit of 113m euros. The shares of the banks discussed in the future are at the lowest level in the last 10 years.

If the merger of Deutsche Bank with Commerzbank, one of the smaller banks of Germany, is not successful, then the German government's capitalization with private investors and the significant shrinkage of the bank's assets and activities are also alternatives.