Two major German banks in merger talks
(31 August 2016 – Germany) Source have told reporters that Germany’s two biggest banks have held talks about a potential merger earlier in August, deciding against pursuing a transaction as both companies focus on restructuring their own businesses first.
The talks involved Deutsche Bank Chief Executive Officer John Cryan and his counterpart at Commerzbank, Martin Zielke. Deutsche Bank Chief Financial Officer Marcus Schenck led a group of executives examining the plan, the source said.
A combination would see Germany’s top two banks combining their consumer businesses, with the opportunity to cut costs, and create a bigger European lender that would be able to compete more effectively, according to the person.
Neither lender confirmed the reports.
Responding to the report, Cryan said that he’s not looking for a tie-up and is instead trying to shrink the company.
“No, part of the work we’re doing is to make our bank a bit smaller, to make it a bit simpler.” Cryan said.
Deutsche Bank has said that it may not be profitable in 2016 while Commerzbank earlier this month forecast a drop in full-year net income.
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