Germany’s Deutsche Bank and Commerzbank have confirmed on Sunday that they are in talks over a possible merger, according to Reuters.
A source with knowledge told Reuters, following meetings of the two management boards of both banks the announcement was made.
The source further said, “we are going to seriously evaluate a merger” and added, “but there is no guarantee that there will be a deal in the end.”
Deutsche Bank said in a statement, “in light of arising opportunities, the management board of Deutsche Bank has decided to review strategic options.”
The bank confirmed there is no guarantee of a deal and the board are “focused on improving the growth profile and profitability of the bank, “Commerzbank are “open” to the outcome.
Since 2016 there has been long speculation over the two banks however, with formal talks disclosed, there are strong indications that a merger may happen, as both lenders are gaining pace.
The German government holds a 15% stake in Commerzbank after a bailout, the government are also concerned over Deutsche, as they have been struggling with profits since the 2008 financial crisis.