(March 8) – “Allianz, Deutsche Bank and Dresdner Bank, Germany’s leading financial institutions, are close to announcing a banking merger and three-way asset swap that will transform Europe’s financial landscape,” The Financial Times is reporting today.
“On Thursday, Deutsche and Dresdner are planning to announce that they are merging to create one of the world’s largest banks, an asset management giant and European investment banking powerhouse.
“Simultaneously Allianz, the financial services group which is a shareholder in both banks, will announce that it is acquiring Deutsche’s $120bn DWS German mutual fund arm, reinforcing its position as one of the world’s largest asset managers. The Deutsche-Dresdner merger – in effect a takeover by Deutsche of its smaller rival – is aimed at freeing Deutsche from the constraints of the domestic German banking market, where its profitability is low, and enabling it to pursue its global ambitions. The combined bank will be named Deutsche Bank.
“Allianz, based in Munich, is also to take a stake of about 40 per cent in the new Deutsche-Dresdner combined retail banking unit. It is understood that this separate retail banking company is likely to be floated as a public company with Allianz boosting its equity stake.
“Allianz hopes to sell its savings products through the retail banking network and believes that Dresdner and Deutsche’s branch network should help it pull in new assets from individuals.