Commerzbank leaves the race for NordLB

But now, just before the deadline for submission of binding bids expires on Wednesday, the field is clear. As things stand, NordLB is losing more and more bidders. According to the Handelsblatt, Commerzbank is pulling out of the bid process and Helaba's interest is also on the verge of being uncontrollable.

In order to tackle NordLB's capital problems, the majority shareholder, the State of Lower Saxony, has been looking for new investors. The institute is suffering from lazy loans to ships for some time now. And since a loss of about two billion euros in 2016, resulting from the takeover of Bremer Landesbank, NordLB has not put itself on its feet well.

Commerzbank does not want to submit a firm offer for NordLB on Wednesday, said the familiar topic Handelsblatt. Several parts of the Hanoverian Institute are not attractive for silverware from Frankfurt.

And, according to the CEO, Martin Zielke, these tensions would be superimposed on the growth and synergy effects that the institute could obtain by taking over in the activities related to private customers and companies. The end result of Commerzbank has therefore come to the conclusion, according to the insiders, of the ongoing internal restructuring process and not to complicate this complex project with a takeover of NordLB.

Superlandesbank in danger

At Sparkbaden-Lager, many still hope that Helaba will eventually win the contract of Hannoveraner Landesbank, and then merge with NordLB. Subsequently, the merged institution could merge with other leading public sector institutions to advance the consolidation of the sector.

According to Helmut Schleweis, the chairman of the savings banks, a merger between NordLB and Helaba should be the first step towards becoming a kind of Superlandesbank, to which the fund service provider could also be added. question, Deka Bank and Landesbank LBBW.

However, it is very uncertain that Helaba is making a binding bid for NordLB. At the moment, the savings banks of Lower Saxony are not ready to respond to requests from Helaba and its owners. They want the savings banks of Lower Saxony to participate in strengthening the capital of NordLB. In addition, they should then enter a community of similar responsibility, as do the savings banks of Hesse and Thuringia with Helaba.

Among other things, the framework of this so-called concept of collaboration aims to establish a close link between institutes. In addition, there is an additional reserve fund in which the savings banks and Helaba pay. From Helaba's point of view, it is important to maintain this model in order to defend at least halfway its own rating during a merger with NordLB.

According to the financial community, despite Helaba's critical attitude, discussions between the Hesse-Thuringia and Lower Saxony savings banks are still under intense debate. Helaba also advises the relevant investment banks. Many savings banks hope that Helaba will keep at least one open back door and will not leave the race at NordLB for good.

Time is short The Hanovrians want to present a sustainable concept for the future of the institute by the end of the year. Already next Monday could fall a preliminary decision. Then, representatives of NordLB meet to evaluate the offers available to date and discuss the next actions.

The negotiations in Hanover are not just about the fate of the Landesbank. The savings banks fear that the business will become the gateway for private investors to the public sector.

The fear of the private savings fund

The subject is sensitive. Until now, the savings bank financing group has successfully repelled any attempts by investors to enter the phalanx of public sector savings banks. Thus, the attempt of the mayor of Stralsund failed to sell the Sparkbade of the Hanseatic city to a private institute. During the privatization of Bankgesellschaft Berlin, which also included Berliner Sparkbade, the German savings banks and the Giro badociation managed to outperform private investors.

Now, Hanover is threatened with a new challenge. After all, at the end of the bidding process, there will probably be not only a new owner for NordLB, but also for the subsidiary Braunschweigische Landessparkbade.

If Helaba still had to get the contract for NordLB, it would not change much for the Landessparkbade, because Helaba is also part of the Sparkbaden-Finanzgruppe. With the cancellation of Commerzbank, the risk of a private entrance for savings banks has become smaller, but not yet banned.

The Cerberus holding company is one of the potential bidders. Cerberus has already acquired HSH Nordbank with other investors and the US fund has gained experience in dealing with private clients. In Austria, Cerberus played an important role in the restructuring and IPO of Bawag, a bank of 1.2 million private customers.

In an interview with the Handelsblatt, the Mayor of Braunschweig, Ulrich Markurth (SPD), wishes to draw conclusions and take back the savings fund with the comrades of the country. "In this case, I would advocate for strengthening the independence of the savings bank," said Markurth. Braunschweig would then consider, together with other municipalities, on which the Sparkbade shopping area – Goslar, Holzminden, Helmstedt, Salzgitter, Wolfenbüttel and Wolfsburg – extend the savings achieved in the medium term.

But it's still future music. First and foremost, a buyer must find a stake in NordLB.