To global banks hungry for expansion, Germany’s commercial banks appear tempting again. Earlier this year, Citigroup expressed an interest in taking over Deutsche Bank, Germany’s largest bank. But the US bank failed to get to the next step after Deutsche’s board said the bank preferred independence.
Since Deutsche is not for sale, two other big commercial banks are now the subject of takeover speculation in German financial circles: Second-ranked HypoVereinsbank (HVB) and fourth-ranked Commerzbank. Following a dramatic improvement in their fortunes recently, the banks’ chief executives have signalled that a merger would help them better compete in Europe. And unlike Deutsche, both can be had for a bargain price, as their market capitalisation is still below book value.
