(.)

by Elisa Martinuzzi, Christian Kraemer and Tom Sims

LONDON (Reuters) – Five years after the failure of a merger attempt between Deutsche Bank and Commerzbank, the banks’ uncertain outlook for profitability and Germany’s need to plug a budget hole are reigniting speculation about a possible deal.

Germany has declared that it is considering all options to raise funds, in particular by selling stakes in companies, with Berlin having a stake in around a hundred of them.

Even if a sale of its remaining 15% stake in Commerzbank is not imminent, Finance Minister Christian Lindner is open to a sale and would ultimately prefer that the German state withdraw from the group, according to a source close to the thoughts of the group. minister.

A merger with Commerzbank would allow Deutsche Bank to further diversify by being less dependent on volatile investment banking revenues, which would strengthen its long-term stability, another factor that could influence the German government’s decision, says the source on condition of anonymity.

Deutsche Bank, which has completed the bulk of a multi-year restructuring plan, has recently intensified internal discussions over its options, including possible acquisitions of banks like Commerzbank and ABN Amro, Bloomberg reported on Friday, without cite sources.

In recent months, Deutsche Bank has been attracted to the idea of ​​a merger with Commerzbank, although there are no discussions underway, a second source with knowledge of the matter told Reuters.

Representatives of Germany’s Finance Ministry and a Commerzbank spokesman did not immediately respond to Reuters requests for comment. Deutsche Bank declined to comment.

(Reporting Elisa Martinuzzi, Christian Kraemer and Tom Sims, with contributions from Pablo Mayo Cerqueiro and Emma-Victoria Farr; Claude Chendjou)

Copyright © 2024 Thomson Reuters