The Plan is to forge a major German Bank, burst. Deutsche and Commerzbank announced the cancellation of the talks – and will now have to see how it goes for you.
Deutsche Bank and Commerzbank have completed their exploratory talks on a go with no result. “After a thorough examination it has been found that such would not have been concluded in the interest of shareholders and other stakeholders”, justified both institutions word their decision. A merger would achieve higher and sustainable returns for the shareholders and the benefits for the customers must improve. But that was not the case.
Negotiations under the pressure of the policy
The banks had been negotiating for six weeks – triggered by the desire of the policy. Federal Finance Minister Olaf Scholz and his Secretary of state, Jörg Kukies had repeatedly summoned the advantages of a “national banking Champions”. Both Deutsche Bank head Christian Sewing as well as Commerzbank chief Executive Martin Zielke had said at the start of the talks, however, to negotiate openly the “result”. The more value they could not see, however, “in view of the implementation risks, restructuring costs and capital requirements that went with such a large Integration of” hand-in-hand. It is expected that different models.
“I am relieved that the economic reason has prevailed,” said Klaus Nieding, a long-time banking expert of the German protection Association for securities holding (DSW), the break in the talks. “For the little bit, the Chance that the risks were too great.” Opportunities have existed to get a bigger weight in the international market as a “national Champion”. But such a Bank would be important to the system than it is about the Deutsche Bank is today. “This ‘German Commerzbank’ we would have been at the mercy of,” said Hans-Peter Burghof, Professor of Banking and financial services at the University of Hohenheim. Because it would also not have to Skid, would have to save the state on each case. Of a “victory of reason” language Interview with Thomas Hartmann-Wendels, a banking expert at the University of Cologne in a DW. “From the beginning, was never really clear what should be the effect of this merger. It was foreseeable that it would fail.”
Cost pressure and downsizing
Also the cost would be to press only on the long term. Because savings would have been mainly at the expense of the employees. In the run-up to the speech, the need to remove would have had 30,000 Points. Verdi chief Frank Bsirske, a member of the Supervisory Board of Deutsche Bank, welcomed the decision, particularly in view of the fact that the disadvantages of such a merger would have outweighed, especially in terms of jobs. These job losses would have likely made especially, Commerzbank, suspects Dieter Hein, an Analyst of fair search, because the Deutsche Bank employees in Germany had to a large extent a guarantee of Employment until 2021.
The members of both houses voted with a large majority against a go together of their banks – and this attitude would have worn well but also the employee representatives on the Supervisory Board. “That such a project against the massive opposition of the employees, is difficult,” says Hein. Add to that: such A reduction in cost is first of all a lot of money, so, it will take years until you’re actually under the bar better than before. These restructuring costs, an Acquisition of Commerzbank to lift, would need to increase, Deutsche Bank also likely to be your capital, it depends on the capital market.
Dissatisfied major customers and shareholders
Not only the employees made their opposition clear. Also, the customer and major shareholders had expressed criticism. The wholesale customers are likely to have voted already with their feet: “Those who plan for the long term, are likely to have already been looking for other Bank partners,” suspected Bank Professor Burghof. Especially in the case of large, medium-sized customers trust in their Bank is important. this could, however, have now suffered. The major shareholders of the Deutsche Bank, in turn, like the Emirate of Qatar or the asset Manager Blackrock had not endorsed the merger. You should have looked primarily to the increased value in the business model. “The business areas of both banks overlap strongly”, diagnosed as shareholder, protector Nieding. But the problem areas you would not have come forward. Because Commerzbank has driven its investment banking after the financial crisis, in this area, you would have brought the German Bank nothing. And in the case of medium-sized customers, Commerzbank in focus, in turn, would have been doubtful whether would have remained a large Bank loyalty.
That she is also alone in a good way, tried the German Bank to be documented in the same breath: she has published with the decision against the merger, some of the core of their quarterly balance sheet which it wants to introduce in Detail until Friday to pay. Then she reached between January and March, a net profit of 200 million euros, which is about four times as much as analysts had expected. The Bank will check further, all Alternatives to increase long-term profitability and returns for their shareholders, also.
A possibility could be the combination of your Fund subsidiary DWS with the Swiss UBS, the observer for a sensible Option. For Commerzbank, in turn, have already expressed an interest in several foreign banks such as Italy’s Unicredit, or the Dutch Bank ING. How big the interest is, in fact, could show up in the next few weeks. For probably Philipp Häßler, an Analyst from Pareto Secrities does not consider such a solution: the German banking market is not attractive enough. In the stock market you appreciated the breakdown of talks for Deutsche Bank initially positive, in the end, you slipped but as previously Commerzbank in a Minus.