The German state wants to sell its stake in Commerzbank. This is fuelling takeover speculation. Deutsche Bank is blocking the idea.
Deutsche Bank CEO Christian Sewing has rejected any takeover ambitions in light of the planned state exit from Commerzbank. “We are focusing on Deutsche Bank,” said Sewing at the “Handelsblatt” banking summit in Frankfurt. A takeover of Commerzbank by Deutsche Bank would “not be an issue” under his leadership, the manager said when asked.
The German government is planning to exit Commerzbank. As a first step, the federal government wants to reduce its stake in the institute, as the Finance Agency of the Federal Republic of Germany announced on Tuesday evening.
Commerzbank is repeatedly considered a takeover target for banks from Germany and abroad. Deutsche Bank and Commerzbank had already negotiated a merger. The talks failed in 2019.
Commerzbank CFO Bettina Orlopp said at the Handelsblatt banking summit that the news from the finance agency was proof that Commerzbank was on the right track. If interested parties came knocking on the door of the bank, they would look into it. “Our top priority, however, is to move Commerzbank forward.”
Commerzbank got into financial difficulties in the wake of the 2008 financial market crisis and received capital aid of 18.2 billion euros from the state Financial Market Stabilization Fund (FMS) in 2008 and 2009. According to the information, around 13.15 billion euros have been repaid so far. The federal government currently holds a 16.49 percent stake in Commerzbank through the FMS.
Source: Stern
