A major shareholder common to both banks is open to the idea of their merger. But question is, can they both turnaround on their own?
On Wednesday, Cerberus, a U.S. investor which has a major stake in Germany’s Commerzbank and Deutsche Bank stated, it is open to a merger between two of Germany’s largest private banks, said a source familiar with the matter at hand.
Given that Cerberus is a major shareholder in both banks, its statement will most probably add spice to the probable deal.
“Cerberus wouldn’t stand in the way of a merger,” said a source who is familiar with the thinking of the U.S. buyout firm.
The source went on to add, Cerberus believes that although there is still room for two big banks in Germany, the question is whether both banks can turn around their businesses on their own?
Deutsche Bank didn’t respond to requests for comment.
Commerzbank’s spokeswoman declined to comment.