facebookIs Deutsche Bank and Commerz Bank not going to merge anymore, or is it still on? How will mergers affect their stock price? - Seedly

Anonymous

18 Apr 2019

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General Investing

Is Deutsche Bank and Commerz Bank not going to merge anymore, or is it still on? How will mergers affect their stock price?

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Hey! I was watching this issue quite closely! Unions have been blocking the deal- in defence of job losses in the thousands. So while Deutsche and Commerz could potentially create a strong German Powerhouse, strong resistance from its supervisory boards from both banks and its labor representatives will potentially undermine and stall the Merger efforts for the foreseeable future. Even so, the Bank has to go through the country's lawmakers which too have been showing rising opposition.

TLDR- I believe this case reminds me much like Qualcomm's acqusition of Broadcomm in 2018 which was blocked by the Trump Administration. So while the potential of merger did in fact trigger positive sentiment in their stocks respectively, ultimately the deal fell through and simply would not be worthwhile pursuing. It is best for management to reevaluate their odds at this juncture.

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