Apr 25, 4:10 PM EDT Newsletter Signup BusinessTechnologyWorldNationalMedia & CultureOpinionSportsLuxury Business By Kalyan Kumar 04/25/19 AT 10:41 AM Merger talks between Germany’s top banks, Deutsche Bank and Commerzbank have failed.The banks said on Thursday that they did not see a viable deal emerging and the benefits were not matching the costs and risks also existed on the execution front.Speculation on the merger had been rife for months. Olaf German Finance Minister Olaf Scholz has been a vocal proponent of creating stronger banks for Germany.Citing the need for extra capital, and restructuring costs, the banks said they are calling off the merger talks as the deal-making would be risky.Sustainable returns needed “It made sense to evaluate this option for domestic consolidation in Germany. However, we were always clear: We needed to be convinced that any potential combination would generate higher and more sustainable returns,” said Christian Sewing, chief executive officer of Deutsche Bank.The German government holds a 15.5 percent stake in Commerzbank after it supported the bank with a bailout assistance during the financial crisis.The German government was supportive of the merger. But the deal faced resistance from trade unions also who said more than 10,000 jobs would be axed.In the event of a… Read full this story
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