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The boards of directors of Deutsche Bank and Commerzbank meet separately to decide on the opportunity to start exploratory discussions on mergers.
The meetings were convened after the German government announced this weekend that it would support the restructuring needed to bring the two largest German listed lenders closer together.
Three people familiar with the discussions told the Financial Times that the meetings of the board of directors were convened in a very short time and that the banks were to receive an official statement later on Sunday.
An informed person said the exploratory talks "will not be completed in a week" but that he expects protracted negotiations on an agreement that would create the second largest eurozone lender after BNP Paribas with 1 , 9 billion common badets and more than 140,000 employees.
Analysts estimate that at least 20,000 jobs should be removed as part of a merger, which the German unions oppose.
According to a senior official of the German government, the main goal of Berlin is that the country's largest banks tackle their chronic problems due to exorbitant costs and poor capital performance.
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"A merger [of Deutsche Bank and Commerzbank] could be one of the many options for doing this, "said this person at the Financial Times, adding that the government was not" pushing "the two banks into a deal.
Over the weekend, Deutsche Bank had informed a major shareholder of Sunday's board meeting, told the FT a person close to a top 25 investor, adding that this shareholder does not have a shareholder. Was still not convinced of the merits of a merger with Commerzbank an agreement under the right circumstances. "It must be motivated by convincing business arguments, not political arguments," said the person.
Until now, the only major shareholder in Deutsche Bank to support a merger was Cerberus, which, in addition to its 3% stake in Germany's largest lender, also holds a 5% stake in Commerzbank.
In mid-February, Christian Sewing, managing director of Deutsche Bank, decided in mid-February to oppose a multi-billion euro merger with his smallest rival and asked board of directors a formal mandate for the informal selection of options.
Commerzbank's managing director, Martin Zielke, sees the deal as one of the few realistic options for consolidation, such as a cross-border deal involving another European lender, faced with high regulatory and political hurdles, according to reports. people informed of his thoughts. However, Zielke would insist on several prerequisites before supporting a merger.
Future reductions in troubled investment banking by Deutsche Bank may prove to be a stumbling block. "[A merger] This is a unique opportunity in a lifetime to do everything possible, "told the Financial Times a person familiar with the remarks made by the Director General of Commerzbank, adding that this process should lead to the closure of more activities investment banking deficit. During the decade following the financial crisis, Commerzbank almost entirely got rid of its own investment banking business.
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