Merger possible for German bank giants
The German finance ministry is willing to “orchestrate” a merger between Deutsche Bank AG and Commerzbank AG, according to Focus magazine.
Various scenarios have been discussed, including one in which the German state would become Deutsche Bank’s largest shareholder for about five years before merging the two banks, Focus reported without saying how it got the information. Alternatively, Deutsche Bank could raise money from German industrial companies to buy Commerzbank. Another option discussed in the finance ministry has been creating a holding company that would own stakes in both banks.
Representatives for the finance ministry, Deutsche Bank and Commerzbank all declined to comment.
Finance Minister Olaf Scholz has said the country needs strong banks for its export-oriented economy.