Deutsche Bank turns down purchase proposals.
The German government is considering selling off its shares in Commerzbank. Initially, they intend to decrease their ownership in the bank, as revealed by the Bundesbank on Tuesday night.
Commerzbank has been an attractive acquisition target for both local and international financial institutions over the years. A potential merger between Deutsche Bank and Commerzbank was explored in the past, but discussions fell through in 2019.
Commerzbank faced financial troubles during the 2008 economic crisis and needed a total of €18.2 billion in bailouts from the government's Financial Market Stabilization Fund (FMS) in 2008 and 2009. So far, around €13.15 billion of this aid has been returned. The German government currently holds a 16.49% stake in Commerzbank, acquired through the FMS.
In response to a question at the Handelsblatt Banking Summit in Frankfurt, CEO of Deutsche Bank, Christian Sewing, stated that he's focusing solely on Deutsche Bank. He further insisted that the likelihood of Deutsche Bank taking over Commerzbank is minimal under his leadership.
Despite Deutsche Bank's CEO expressing minimal interest in acquiring Commerzbank, some international investors might still be considering a takeover proposal. However, the German government, having previously bailed out Commerzbank and still holding shares, may choose to reject any offer deemed unfair or detrimental to the country's financial interests.
