Deals
Commerzbank CEO Says Merger Would Add Much-Needed Scale
- Says bank needs to grow for needed investments to pay off
- ‘The alternative of doing nothing is not an option,’ he writes
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Commerzbank AG Chief Executive Officer Martin Zielke, almost three weeks into formal discussions about a combination with Deutsche Bank AG, is lobbying hard to overcome internal opposition to the idea.
The lender doesn’t have the market share needed for costly investments to pay off, Zielke told employees in a memo. Low interest rates are squeezing profits, regulatory expenses have increased and clients are demanding quick and digital banking solutions, he said. While Commerzbank’s strategy of aggressive client acquisitions was working, a deal could be a faster way to add scale.