TLDR: Deutsche Bank and Commerzbank have reportedly revived merger talks, five years after their initial plans were called off. The renewed speculation comes amid uncertainty in the banking sector and Germany’s need to shore up its budget. Germany is considering selling its 15% share of Commerzbank as part of its plan to raise funds by selling stakes in some of its state-owned companies. Finance Minister Christian Lindner is open to selling the stake and merging with Commerzbank would allow Deutsche Bank to shift away from investment banking earnings and strengthen its long-term stability.
Last week, Commerzbank announced it is working with Global Payments to offer digital payment solutions to small and medium-sized businesses in Germany. The two companies have formed Commerz Globalpay GmbH, which is set to launch in the first half of this year and will provide merchants with a suite of omnichannel payment and software solutions. Commerzbank said this move is part of its focus on expanding its asset and wealth management units, as raising fee revenues will be a focus for its growth initiative in the coming years.
