4/25/2019, 9:24 AM (Source: TeleTrader)
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Deutsche, Commerzbank merger talks set to fail - report

Merger talks between German banking giants Deutsche Bank AG and Commerzbank AG are expected to collapse, the Financial Times reported on Thursday, citing a source with knowledge on the matter. According to the report, Deutsche Bank determined that the merger would not justify the implementation costs, capital demands, and integration related risks.

Earlier this month, reports emerged that Deutsche Bank is preparing an alternative plan for its investors in case the talks with Commerzbank fail. The company's chief Christian Sewing considered two strategies, to either update the current plan with faster cost cuts, or to make a larger shift in the bank's overall strategy.

Should the negotiations still result in a deal, the merger would result in creating the largest lender in Eurozone, with approximately €1.8 trillion in assets. Meanwhile following the news, Deutsche Bank shares added 0.58% at 9:28 am CET. Commerzbank fell 1.37% at the same time.

Baha Breaking News (BBN) / SS