BERLIN (AP) — Deutsche Bank and Commerzbank are halting talks on a possible merger that would have created Germany’s biggest financial institution.
Deutsche Bank said Thursday that “after careful analysis” its management board has concluded that a combination with its rival “would not have created sufficient benefits to offset the additional execution risks, restructuring costs and capital requirements associated with such a large-scale integration.”
The major German lenders announced March 17 they would discuss a merger. The country’s finance minister reportedly favored the move, but there was widespread skepticism about the merits of merging two companies overhauling their businesses after years of troubles, as well as concerns about the possibility of large-scale job losses.
Separately, Deutsche Bank said it expects to report first-quarter net income of about 200 million euros (24.2 million) Friday.