(2 September 2008 – Europe) Germany’s Commerzbank has agreed to acquire Dresdner Bank from Allianz for A$17 billion.The purchase of Dresdner, the third largest private bank in Germany, by Commerzbank, the second largest, for 9.8 billion euros (A$17 billion), will create the leading bank for private and corporate customers in Germany.
Michael Diekmann, chief executive officer at Allianz said that, with an approximate stake of up to 30 percent, Allianz will be Commerzbank’s largest shareholder and will gain access to its powerful distribution network.
Diekmann also said that the acquisition is a milestone for banking consolidation in Germany. Commerzbank predicts that it will book around €2 billion in restructuring costs next year, to be offset by savings of €5 billion, mainly by 2011.
Martin Blessing, chairman for Commerzbank, said that the match of Commerzbank and Dresdner Bank gives it high growth prospects and the most effective distribution platform in the German banking industry.
The combined bank will have a total of around 11 million private customers and more than 100,000 corporate and institutional clients, along with 67,000 employees.
The combined number of branches totals approximately 1,540. By 2012, this will be reduced to approximately 1,200 branches. Overall, Commerzbank will own the largest branch network of all banks in Germany, ahead of Deutsche Bank.
The combined bank would have estimated total assets of around €1.1 trillion but still trail number one Deutsche Bank, at €1.99 trillion.