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4/25, 10:48 AM (Source: TeleTrader)
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Deutsche, Commerzbank end merger talks

Germany's two biggest banks, Deutsche Bank AG and its rival Commerzbank AG, announced on Thursday they have ended their merger talks, confirming media reports.

"After careful analysis, the Management Board of Deutsche Bank has concluded today that a combination with Commerzbank would not have created sufficient benefits to offset the additional execution risks, restructuring costs and capital requirements associated with such a large-scale integration. As a result, the two banks have decided to discontinue discussions," Deutsche said in a press release.

Earlier, it was reported Deutsche Bank was looking into alternatives to the merger, with one of them being the creation of a new entity to contain and dispose of unwanted assets.

Following the announcement, Deutsche's shares rose 3.25% at 10:54 am CET, while Commerzbank's fell 1.81% at the same time.

Breaking the News / MD