Deutsche Bank’s management board will review strategic options regarding merger. It will also help to focus on improving the growth profile and profitability of the bank.
Deutsche Bank noted that there is no certainty that any transaction will occur.
In September 2016, both firms had reportedly held talks for a merger for the first time.
The merger would allow the Germany’s top two lenders to incorporate their consumer businesses, enabling to reduce costs and form a larger organization that would be more competitive.
Deutsche Bank offers commercial and investment banking, retail banking, transaction banking and asset and wealth management products and services to corporations, governments, institutional investors, small and medium-sized businesses, and private individuals.
In a statement, Deutsche Bank CEO Christian Sewing said: “Today we have informed the public that, in the context of reviewing strategic options, we are engaging in discussions with Commerzbank.
“For months now, there have been permanent rumours regarding potential mergers. That is why it is personally important to me to provide you with some more context.
“With branches in around 50 countries, Commerzbank is a major international commercial bank that offers a comprehensive portfolio of financial services to the private and small business customers, as well as corporate clients.
“You may recall that last September I said that, first and foremost, we intend to do our homework. In this regard, we have made a lot of progress over the last couple of months. This is something we can be proud of and that we can build on.”
Deutsche Bank has significant operation in Europe, as well as in the Americas and Asia Pacific.
The bank, which has around 1,000 branches, serves over 18 million private and small business customers and 70,000 corporate clients, multinationals, financial service providers, and institutional clients.
Commerzbank finances around 30% of Germany’s foreign trade. It is also a major provider of capital market products. The bank’s subsidiaries Comdirect in Germany and mBank in Poland are online banks that efficiently serve customers in the region.
