EU: Deutsche Bank and Commerzbank held tie-up talks

Germany’s two biggest lenders, Deutsche Bank and Commerzbank, held talks about a tie-up earlier this month, before deciding that it was not the right time to proceed with a combination.

Talks ran for about two weeks, involving Deutsche’s chief executive, John Cryan, as well as his counterpart at Commerzbank, Martin Zielke, according to people familiar with the situation.

However, the preliminary discussions recently ended after both sides concluded that it was not the right moment to combine, as they both had significant work to do on their own businesses before they could take on such a large-scale transaction.

Deutsche is in the process of an overhaul that involves downsizing its retail-banking network, while Mr Zielke, who took over from Martin Blessing in May, is due to set out his plans for Commerzbank this autumn. Mr Blessing had previously looked into the possibility of how a combination with Deutsche might work.

Full Content: Financial Times

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.