Two major Deutsche Bank shareholders have expressed skepticism about potential merger talks with Commerzbank, arguing that the deal would not address long-standing financial challenges exacerbated by the 2008 global financial crisis.
Deutsche Bank CEO Christian Sewing has engaged in preliminary discussions with Commerzbank following pressure from German authorities concerned about the bank's stability. The proposed merger would create a combined entity with an estimated 24 billion euro equity value and a 20% share of Germany's retail banking sector, according to sources.
However, top-10 shareholders remain unconvinced, warning that the integration process would require significant resources without guaranteed returns. "We remain against this merger and do not see it as a viable strategy," one investor stated, highlighting risks of combining two institutions still recovering from 2008-era penalties and fines.
A separate shareholder emphasized the need for a detailed roadmap before any decision, noting that the merger's strategic value remains unproven. "We continue to question whether such a combination would make sense," the investor said.
The two banks are expected to announce a decision within weeks, though the outcome remains uncertain. While U.S. investor Cerberus Capital Management has shown openness to the merger, the skepticism from key shareholders complicates the process.
German business sentiment shifted positively as shares in both banks rose on Monday. Deutsche Bank's stock gained 3.3%, while Commerzbank's climbed 5.6%, outpacing the broader DAX index. A 2016 photo of the banks' logos at Frankfurt's stock exchange accompanied the report.
The Federation of German Wholesale, Foreign Trade and Services (BGA) suggested a merger could benefit the economy if it results in a stronger domestic banking presence. "Finding reliable funding partners for German exports has become increasingly difficult," BGA President Holger Bingmann noted, stressing the need for a resilient banking sector.
