Deutsche Bank is preparing to announce merger negotiations with Commerzbank

Deutsche Bank was scheduled on Sunday to confirm the merger talks with its German lender Commerzbank, according to a knowledgeable person in the file, indicating that efforts to combine the two companies were gaining momentum.

The official disclosure of the talks increases the chances of reaching a rapprochement between the two largest banks in the country.

The merger has long been the subject of speculation and the German government has insisted that health concerns raised by Deutsche strive to generate sustainable profits since the 2008 financial crisis. more than 15% in Commerzbank as a result of a bailout.

Earlier this month, a person with knowledge of the case had told Reuters that Deutsche 's board of directors had agreed to talk with Commerzbank about the feasibility of a deal. fusion.

"We will seriously evaluate a merger," said Sunday a person familiar with the case.

"But there is no guarantee that there will be an agreement in the end," said the person.

Deutsche Bank and Commerzbank declined to comment.

Although the banks have not publicly commented on the merger talks, German Finance Minister Olaf Scholz confirmed Monday that there were negotiations.

On Thursday, the supervisory boards of both banks are expected to hold long-planned meetings, Reuters told Reuters four people aware of the case. The state of the merger negotiations should be discussed.

The German union Verdi strongly opposes a possible merger between the two banks, saying the merged group would be a more attractive target for a hostile foreign takeover and claiming that at least 10,000 jobs are threatened.

The total strength of the two banks is approximately 140,000.