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The Associated Press BERLIN (AP) – Deutsche Bank, the largest German bank, and its national rival, Commerzbank, have decided to open negotiations on a possible merger, lenders announced in a monthlong announcement. speculation on such a comparison.
Commerzbank said in a statement in one sentence that banks "have agreed today to start discussions with an open result on a possible merger".
Deutsche Bank said its board of directors had decided to "review the strategic options" and added that there was no certainty about the emergence of a transaction . He said "in this context, we confirm that we engage in discussions with Commerzbank."
A merger would bring together two banks that had more than 133,000 full-time employees at the end of last year and had had problems in recent years. The merger talks were greeted with some skepticism as the two banks were restructuring their own businesses, raising the question of how to integrate a new partner.
However, there has been lingering speculation in recent months that both lenders, with the apparent encouragement of the German government, would explore a possible combination.
The German Finance Ministry said the country needed strong banks, but did not comment on reports that it was supportive and even in favor of a merger. The Ministry of Economy recently spoke of the importance of national and European "champions" capable of competing on the global economic scene, designating Deutsche Bank as an existing organization.
Deutsche Bank has embarked on a major restructuring and cost reduction effort to return to stable profits and resolve longstanding legal issues. In 2018, it made its first profit over three years, but recorded a loss for the fourth quarter.
Commerzbank, which received government support during the financial crisis, also restructured. The German government still has a participation of about 15% in the company.Speech
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