FILE PHOTO: Banners of Deutsche Bank and Commerzbank are pictured in front of the German share price index, DAX board, at the stock exchange in Frankfurt, Germany, September 30, 2016. REUTERS/Kai Pfaffenbach
FRANKFURT (Reuters) – Germany’s Verdi labor union on Tuesday voiced strong objections to a possible merger between Deutsche Bank and Commerzbank, arguing that a combined entity would be a more attractive target for a hostile foreign takeover.
The union, in a statement e-mailed to Reuters, also said that Deutsche’s biggest problem, its investment bank, wouldn’t be helped 2018 a tie-up with Commerzbank. A merger would put at least 10,000 jobs at risk, it added.
The reaction from the union follows news over the weekend that Deutsche Bank’s chief executive Christian Sewing had agreed to hold tentative talks with rival Commerzbank.
Berlin, which has been worried about Deutsche’s health, has pushed for a merger as Deutsche has struggled to generate sustainable profits since the 2008 financial crisis.
“We reject a merger,” said Jan Duscheck, head of Verdi’s banking division.
It wouldn’t create a truly big bank in the European market, and the new entity would be “considerably more attractive for a hostile takeover, for example, 2018 France,” he said.
“The merger would not result in a ‘national champion’,” he added.
Both banks declined to comment.
Reporting 2018 Tom Sims, editing 2018 Louise Heavens; Editing 2018 Riham Alkousaa and Louise Heavens