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Update: 18 March, 2019 09:40 AM
Deutsche Bank and Commerzbank in formal merger talks

Deutsche Bank and Commerzbank in formal merger talks

Photo: Reuters

Germany's two biggest lenders, Deutsche Bank and Commerzbank, will hold formal talks about a merger.

The announcement caps months of speculation that the two struggling banks would attempt to combine.

A merger could result in massive cost savings, in particular by closing branches. But critics say integrating the firms would be complicated and risky.

The German government appears to favour a deal.

It still owns a 15.5% stake in Commerzbank, acquired after the bank was bailed out following the financial crisis.

Reports says that German Finance Minister Olaf Scholz has urged the two to consider merging, as he believes Germany needs a national champion in the banking sector.

Combined the banks would have one fifth of Germany's High Street banking business and control €1.8 trillion of assets, such as loans and investments.

"What is important to me is that we will only pursue options that make economic sense, building on the progress we made in 2018," chief executive Christian Sewing said in a letter to employees.

Deutsche Bank has been struggling to generate growth and has been hampered by losses at its US investment banking operations.

Commerzbank has also found it difficult to grow.

Both banks are facing an economic slowdown in the Eurozone and in Germany where, at the end of last year, the economy narrowly avoided falling into recession.

Critics of the tie-up say that combining two struggling banks would just create one large bank with problems.

Also, the deal faces opposition from unions who fear that more than 10,000 jobs could be cut if a merger is agreed.

সম্পাদক : ইমদাদুল হক মিলন,
নির্বাহী সম্পাদক : মোস্তফা কামাল,
ইস্ট ওয়েস্ট মিডিয়া গ্রুপ লিমিটেডের পক্ষে ময়নাল হোসেন চৌধুরী কর্তৃক প্লট-৩৭১/এ, ব্লক-ডি, বসুন্ধরা, বারিধারা থেকে প্রকাশিত এবং প্লট-সি/৫২, ব্লক-কে, বসুন্ধরা, খিলক্ষেত, বাড্ডা, ঢাকা-১২২৯ থেকে মুদ্রিত।
বার্তা ও সম্পাদকীয় বিভাগ : বসুন্ধরা আবাসিক এলাকা, প্লট-৩৭১/এ, ব্লক-ডি, বারিধারা, ঢাকা-১২২৯। পিএবিএক্স : ০২৮৪০২৩৭২-৭৫, ফ্যাক্স : ৮৪০২৩৬৮-৯, বিজ্ঞাপন ফোন : ৮১৫৮০১২, ৮৪০২০৪৮, বিজ্ঞাপন ফ্যাক্স : ৮১৫৮৮৬২, ৮৪০২০৪৭। E-mail : [email protected]