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        Deutsche Bank and German Commercial Bank are merging


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Olaf Scholz, Germany's finance minister, confirmed Monday that Deutsche Bank (DBKGn. DE), Germany's two largest listed banks, and the German Commercial Bank (CBKG. DE), were studying the possibility of a merger.
"Discussions have been conducted around the situation and ways," Scholz told reporters when asked about media reports on the merger talks.
Reuters and other news agencies quoted unnamed sources over the weekend as saying that Christian Sewing, chief executive of Deutsche Bank, had agreed to hold tentative talks with Commerzbank.
The German government has been worried about the operation of Deutsche Bank and has promoted the merger of the two companies. Deutsche Bank has been struggling to sustain profitability since the 2008 financial crisis.
But according to sources familiar with the situation, Deutsche Bank's two major shareholders are skeptical about the merger, questioning whether it can ensure higher returns.
A banking Union in Germany also said it would strongly oppose any merger that would result in massive layoffs.
Those in favour of the merger said it would create a bank with a market value of more than 25.6 billion euros ($28.78 billion) at Monday's closing price and take up 20% of the German retail banking market.
But Deutsche Bank's two largest shareholders disagree.


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