Deutsche Bank estimates losses in merger with Commerzbank
In case of a merger between both organizations, the Deutsche Bank estimates that it would have losses of 1,500 million euros
The merger between Deutsche Bank and Commerzbank is a negotiation that has been driven by the German Ministry of Finance and reaches his fifth week of discussions.
However, there are some aspects against the negotiation. One of them is distrust in the staff of both financial institutions for fear of being dismissed whit the fusion.
For their part, representatives of Deutsche Bank have indicated that they foresee losses in the order of 1,500 million euros in its turnover if the merger with Commerzbank is specified.
Executives from both banks have stressed that they are open to conversations and that commercial discussions advance to the extent that none is harmed.
In this connection, a Bloomberg publication states: “The loss of income annual costs and the restructuring costs incurred by the resulting entity could be compensated in the long term with savings that would lead to union, which is estimated at around 40% of the current Commerzbank’s cost base, around 2,700 million euros.”
Analysts at JP Morgan have indicated that the most affected in this restructuring would be the companies that have accounts in both banks, since the income generated by these deals could fall between 15% and 20%.
M.Pino
Source: El País
