logo
Plus   Neg
Share
Email

Commerzbank Stock Dips On Withdrawal Of Merger Talks With Deutsche Bank

Shares of Commerzbank AG (CRZBY.PK) were losing around 3 percent in the morning trading in Germany after German banking major Deutsche Bank AG (DB) announced Thursday that the banks decided to discontinue talks for a potential combination. Deutsche Bank also issued its first-quarter outlook, and its shares were gaining around 3 percent.

In a statement, Deutsche Bank noted that its Board has concluded, following careful analysis, that benefits from a merger with Commerzbank would not be sufficient to offset the additional execution risks, restructuring costs and capital requirements associated with such a large-scale integration.

Deutsche Bank said it will continue to review all alternatives to improve long-term profitability and shareholder returns.

German daily Frankfurter Allgemeine Zeitung recently reported that Deutsche Bank's merger plans with Commerzbank were facing growing resistance in recent days.

Regarding its trading, Deutsche Bank said it expects first-quarter income before income taxes to be approximately 290 million euros, and net income to be approximately 200 million euros. Total net revenues are expected to be 6.4 billion euros, including 3.3 billion euros in the Corporate & Investment Bank.

The Common Equity Tier 1 ratio at the end of the quarter is expected to be approximately 13.7 percent.

Deutsche Bank will report first quarter results on April 26.

In Germany, Commerzbank shares were trading at 7.58 euros, down 2.85 percent, while, Deutsche Bank shares were trading at 7.82 euros, up 2.99 percent.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Norwex has announced voluntary recall of about 58,000 rubber brooms due to laceration hazard. According to the company, handles of the recalled brooms can break in half, exposing a metal inner rim, posing a laceration hazard to the user. The recall involves extendable indoor/outdoor white rubber... Amazon.com Inc. has expanded its AmazonFresh grocery delivery service to three new cities. Beginning today, Amazon Prime members in Houston, Minneapolis and Phoenix can shop thousands of products, ranging from meat and seafood to fresh produce and everyday essentials. The groceries will be delivered to their homes in two hours or less, with options for one-hour and two-hour delivery. Piping Rock Health Products issued a recall for about 18,600 units of wintergreen essential oil due to poisoning risk for children if they ingest it. However, the company has not received reports of any incidents or injuries so far. The recall involves Piping Rock wintergreen essential oil packaged in glass amber dropper bottles having a black cap and a yellow, red and green label.
Follow RTT