As the German government plans to reduce its stake in Commerzbank, speculation about a potential takeover has increased. However, Deutsche Bank’s CEO has ruled out any interest in acquiring Commerzbank.
Deutsche Bank focuses on its own strategy
Deutsche Bank’s CEO, Christian Sewing, has dismissed any plans for a takeover of Commerzbank, despite the German government’s intention to reduce its share in the bank. Speaking at the Handelsblatt Banking Summit in Frankfurt, Sewing stated, “We are focusing on Deutsche Bank.” When asked about a potential acquisition, he emphasized that such a move would not be considered under his leadership.
The German government has announced its plans to begin withdrawing from its investment in Commerzbank. The Federal Republic of Germany’s Finance Agency disclosed on Tuesday evening that the first step will involve reducing its stake in the bank.
Commerzbank has frequently been viewed as a potential acquisition target by both domestic and international financial institutions. Deutsche Bank and Commerzbank previously engaged in merger discussions, but these talks collapsed in 2019.
Commerzbank’s financial crisis and state involvement
Commerzbank encountered severe financial difficulties during the 2008 financial market crisis. To stabilize the bank, the German government provided capital assistance of €18.2 billion through the Financial Market Stabilization Fund (FMS) in 2008 and 2009. To date, approximately €13.15 billion of this amount has been repaid. Currently, the German government, through the FMS, holds a 16.49% stake in Commerzbank.
