Deutsche Bank and Commerzbank executives have resumed discussions about a potential merger, according to a report citing internal sources. The talks involve Deutsche Bank CEO Christian Sewing and Commerzbank's Martin Zielke, who have been engaged in intensive negotiations over the past days.
Both banks' leadership bodies have authorized the executives to explore the merger, per the report. The renewed interest comes amid broader political support for consolidating Germany's banking sector, with Finance Minister Olaf Scholz advocating for stronger financial institutions.
U.S. investor Cerberus Capital Management, a major shareholder in both banks, has signaled openness to a merger, according to a source. This development has increased speculation about a potential tie-up between the two institutions.
Deutsche Bank, a key global financial institution, has struggled with sustained losses, regulatory issues, and reputational damage since the 2008 crisis. Commerzbank remains partially government-owned following a 2008 bailout, adding complexity to any merger discussions.
FILE PHOTO: Banners of Deutsche Bank and Commerzbank are pictured in front of the German share price index, DAX board, at the stock exchange in Frankfurt, Germany, September 30, 2016.
