Commerzbank Merger With Deutsche Bank Resurfaces

Five years after Deutsche Bank and Commerzbank aborted an attempt to merge, an uncertain outlook for bank profitability and Germany's need to plug a hole in its budget have rekindled speculation about a potential deal, Elisa Martinuzzi, Christian Karemer, and Tom Sims reported for Reuters.

A merger with Commerzbank would allow Deutsche Bank to further diversify away from volatile investment banking earnings, bolstering the lender's longer-term stability. I Photo: Elliott Brown Flickr

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, Pablo Mayo Cerqueiro and Emma-Victoria Farr also reported for Reuters.

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 discussions on deals, including possible purchases of banks such as Commerzbank and ABN Amro, Bloomberg News reported. s

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