Now, the possible banking merger calls the sheikhs on the scene
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The German Megabank seems close enough to touch. However, there is a massive opposition to a merger. Above all the ruling family of Qatar is starting to lose patience in the face of the desaster course.
SThey merge, they don't merge, they merge. For more than a week, Commerzbank and Deutsche Bank unite officially. It is not yet clear whether the two want to enter into a serious relationship. And this is clear: it will not be easy. Because resistance grows on all sides.
Influential investors are not at all happy with the possible banking marriage. This applies in particular to the ruling family of the Koran, which directly controls about 6% of the shares through equity investments and probably another 3% in Deutsche Bank through derivatives. Five years ago, al-Thanis joined the Frankfurt money house and so far has had little enthusiasm for their involvement. The stock collapsed by about two thirds.
Now they fear that a merger would dilute their actions and reduce their influence. For example, Deutsche Bank may be forced to raise fresh money through a capital increase. It is hardly conceivable that the sheiks completely reject the merger plans. But the Gulf billionaires are probably asking for concessions before they accept the merger, Bloomberg said. Therefore Qatar is interested in further bilateral agreements with Germany in other sectors, reports Bloomberg.
And even the largest fund company in the world, Blackrock, one of the major shareholders of both institutions, has doubts about the possible banking marriage. It could not be the goal to create a large investment bank based on the US model, said Vice President Philipp Hildebrand at a conference in Frankfurt a few days ago. That "wouldn't work". He does not understand the reasoning behind the merger plan. "What problem should be solved here?", He asked the former president of the Swiss Federal Reserve.
Particularly strong is resistance among employees. "Especially with regard to jobs that would be lost and why no new successful business model is emerging," Ver.di Jan Duscheck's trade unionist explained his rejection. A merger would put tens of thousands of jobs at risk. The workforce is also skeptical that the new big bank will offer employees good long-term prospects.
Internationally, the institute would still be light
The institutes are currently examining the books. When a decision for or against a merger falls it is officially still open. According to reports, however, the direction should be determined before Easter. Presumably, the investment bank of the Deutsche Bank is currently the most important topic in the talks. In essence, this is the extent to which the blue house is ready to restructure this business.
If the two largest national private banks actually went together, it would be by far the largest German credit institution – which, however, would still be a light weight in international comparison. Federal Finance Minister Olaf Scholz is considered a proponent of a merger. In public, however, he always emphasizes that a decision is a matter for banks and not for politics.
Commerzbank CEO Martin Zielke is apparently positive about the merger. In his opinion, a strong and targeted investment bank could be a useful addition to the business of private and corporate customers of Commerzbank. In a letter to the 49,000 employees of the bank he wrote that Commerzbank has achieved much in this segment in recent years. "So I have a very clear idea of how we can make a significant development in our business. That's why we have talks with Deutsche Bank," says Zielke. "We will keep the time of uncertainty resulting from the survey as short as possible and we will work hard to arrive at a rapid conclusion."
It is not clear what Deutsche Bank CEO Christian Sewing thinks of the merger. Insiders describe him as undecided. He sees many good reasons for a merger, but he wants more facts for a decision. According to Sewing, the resulting "clear dominance" in the domestic market, economies of scale and lower IT costs all require a merger. Furthermore, the costs of refinancing the emerging mega-bank would decrease significantly.
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