Deutsche Bank has been in trouble for almost a decade now and has not been quite able to recover from its troubles that started during the financial crisis back in 2008. It has failed to generate the sort of profits that is expected from a bank of its size, and there are widespread fears about the overall health of the bank. Eventually, the German government decided to step in and broker a merger with rival Commerzbank. The idea of the merger was to ensure that the German banking system remained stable and also to create a megabank that could challenge the biggest banks in Europe. That being said, the merger talks seem to be in a bit of a limbo despite the two banks going public about the fact that they are in talks.
Amidst all that, Italian banking giant UniCredit has probably seen an opportunity to grow and is now considering a bid for Deutsche Bank. According to reports, the Italian bank is quite serious about an acquisition in Germany, and it has emerged that if they fail to acquire Deutsche, then they will try to acquire Commerzbank. That being said, UniCredit is not trying to sabotage the merger talks between the two German banks and are willing to wait it out until the merger talks are completed. However, it cannot be denied that the very fact that UniCredit is circling for either of these banks has caused alarm within the German establishment and there are reports that the two banks are being urged to wrap up their talks quickly so that the merger could go through. If UniCredit gets its hands on any of those banks, then the whole premise of creating a German super bank of sorts will evaporate into thin air, and that is something the policymakers in the country do not want.
While the talks have continued between Deutsche and Commerzbank, people close to the development have stated that the two parties are being very careful about the proceedings. ‘Careful’ perhaps being a euphemism for slow. On the other hand, Commerzbank is trying to wrap this deal up quickly but Deutsche Bank does not seem to be in any mood for a quick deal, and according to some source, they are slowing things up. All the three banks involved in the affair refused to comment on the developments.