Commerzbank merger talk resurfaces as Germany mulls company sales-sources
By Elisa Martinuzzi, Christian Kraemer and Tom Sims
LONDON (Reuters) — Five years after Deutsche Bank and Commerzbank (ETR:CBKG) aborted an attempt to merge, an uncertain outlook for bank profitability and Germany's need to plug a hole in its budget are rekindling speculation about a potential deal.
Germany has said it is looking at all options to raise funds by selling stakes in some of the 100 or more companies it owns.
Though a sale of its remaining 15% holding in Commerzbank isn't imminent, Finance Minister Christian Lindner is open to a disposal and ultimately would prefer the government exiting the stake, according to a person familiar with his thinking.
A merger with Commerzbank would allow Deutsche Bank to further diversify away from volatile investment banking earnings, bolstering the lender's longer-term stability, another factor that could sway the German government, said the person, speaking on condition of anonymity.
Deutsche Bank, which has completed the bulk of a multi-year restructuring plan, has recently stepped up internal discussions on deals, including possible purchases of banks such as Commerzbank and ABN Amro, Bloomberg News reported on Friday, without naming sources.
Deutsche Bank in recent months has come closer to reopening the idea of a merger with Commerzbank, even if there are no live discussions, a second person with knowledge of the situation has told Reuters.
Officials for the finance ministry and a spokesperson for Commerzbank didn’t immediately reply to requests for comment made outside business hours. Deutsche Bank declined to comment.
Deutsche Bank shares closed down 1.23% on Friday to 12.05 euros, valuing the bank at 25 billion euros ($27.37 billion). Commerzbank shares ended the
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