Deutsche, Commerzbank Favor Merger Over Holding Company Structure: Sources | 3/18/2019 | Staff
bluelilly (Posted by) Level 3
FRANKFURT (Reuters) – Deutsche Bank and Commerzbank favor a straightforward merger over more complex ways to structure a deal, three people close to the matter said.

In their base case scenario, a transaction would be organized as a share offer from Deutsche Bank for Commerzbank, they said. That structure is preferred to the creation of a new holding company, which is viewed as too difficult to execute.

Holding - Structure - People - Company - Deutsche

“The holding structure is dead,” one of the people said, referring to setting up a holding company that would buy Deutsche and Commerzbank in return for shares of the new bank.

Sources said last year that Deutsche Bank was examining creating a holding company structure amid speculation at the time that it could merge with Commerzbank.

Month - Banks - Talks - Merger - Decision

Last month the two banks confirmed they were in talks about a merger. A preliminary decision on whether they want to go forward is expected within days.

The people cautioned that no decision has yet been taken on a potential deal structure and there is still no certainty that a deal will be struck at all.

Deutsche - Bank - Commerzbank

Deutsche Bank and Commerzbank declined to comment.

Regulators in the United States, Britain and Switzerland tend to favor the bank holding company structure, in part because it can...
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