EU: Deutsche Bank-Commerzbank deal in talks again

Talks about a possible merger between Deutsche Bank (DB)—the biggest German lender—and its smaller domestic rival Commerzbank are on again.

According to the Financial Times, German officials have taken a keen interest in the possible combination of late, as shown by the fact that Deutsche executives and German government officials met no less than 23 times last year.

Germany’s finance ministry has asked banking regulator BaFin to share the results of its scenario analyses that model a potential merger of Deutsche Bank and Commerzbank, people briefed on the matter told the Financial Times.

Olaf Scholz, German Finance Minister and vice-chancellor, has repeatedly called for a revival of the country’s industrial policy aimed at strengthening the financial sector and creating a national banking champion.

A person briefed on the government’s thinking told the Financial Times that the finance ministry was “definitely looking” at the option of a merger between the banks, as German industry needed a lender big enough to help it expand globally.

Full Content: Financial Times

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