Deals
Deutsche Bank Watchdogs Prefer Merger With European Firm, Not Commerzbank
- ECB sees cross-border deal as promoting European integration
- German banking regulator wants to give CEO Sewing more time
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Deutsche Bank AG’s key regulators would prefer the lender merge with a European rival rather than local competitor Commerzbank AG, setting them apart from forces in the government keen on an all-German deal.
The European Central Bank favors a cross-border combination to drive integration in the region’s financial markets, according to people familiar with the matter. Analysis by German regulator BaFin suggests a preference for a European deal because the two domestic banks are currently too weak to benefit sufficiently from a merger, said the people, who asked not to be identified because the deliberations are private.