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Deutsche Bank merger with Commerzbank considered likely

Section: Daily Dispatches

Deutsche-Commerzbank Deal Seen as a Question of When, Not If

By Olaf Storbeck
Financial Times, London
Monday, August 27, 2018

FRANKFURT, Germany -- To many observers in Frankfurt a tie-up between Deutsche Bank and Commerzbank is not seen as a question of if, but when. 

The prevailing view among the banking cognoscenti in Germany's financial capital is that the country's two largest listed lenders are very likely to merge eventually. The common opinion, backed by large investors in Deutsche, is that the bank first has to successfully integrate Postbank and restructure its ailing investment bank division before it can do a deal with Commerzbank.

... Dispatch continues below ...



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"Lumping together two sick men doesn't create a healthy one," said a person familiar with the thoughts of an influential Deutsche shareholder. 

There are two scenarios that could accelerate the potential merger. One is that Deutsche realizes that it is unable to turn itself round under its own steam; the other is that a foreign peer tables a bid for Commerzbank, forcing Deutsche's chief executive Christian Sewing to make a counteroffer. ...

... For the remainder of the report:

https://www.ft.com/content/cbc8410c-a5e8-11e8-8ecf-a7ae1beff35b

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