Deutsche Bank has signed a definitive agreement to acquire Dresdner Bank’s global agency securities lending business from Commerzbank.
According to the bank, Dresdner’s agency securities lending business will be integrated into Deutsche Bank’s trust and securities services business in global transaction banking (GTB) as part of its local custody franchise.
Terms of the transaction were not disclosed, and closing of the transaction is subject to customary conditions, including receipt of regulatory approvals. The transaction is expected to be completed in the fourth quarter of 2009.
The sale of Dresdner Bank’s global agency securities lending business is part of Commerzbank’s strategy to focus on its core markets and activities, said Deutsche Bank.
Roger Harrold, global head of domestic custody services at Deutsche Bank, said: This acquisition adds one of the largest third-party agency securities lending providers to our custody platform in GTB. We are continually seeking ways to further expand the range of services we provide to our clients, and this addition to the GTB platform will undoubtedly help us achieve that goal.
Tim Smollen, global head of Dresdner Bank’s agency lending business, who will remain head of the business after closing of the transaction, said: The Deutsche Bank platform represents a strong fit for our global business, our clients and our ambitions in the agency lending space. We look forward to working with our new colleagues to ensure the smooth integration of the business and to introduce our complementary service to Deutsche Bank’s clients.
