Deutsche, Dresdner Banks To Merge
FRANKFURT, Germany (AP) _ Ending days of speculation, Deutsche Bank and rival Dresdner Bank announced Thursday they plan to merge, creating an international banking powerhouse with more than $1.2 trillion in assets.
Deutsche Bank will hold between 60 percent and 64 percent of the combined banks, according to a statement released early Thursday. Dresdner will hold a stake between 36 percent and 40 percent. The two banks also plan to spin off their retail unit in the next three years.
The merger is expected to be completed by July 1 and save the company $2.8 billion by wiping out overlapping operations.
Deutsche Bank’s chief executive Rolf Breuer and Dresdner’s Bernhard Walter will be co-chief executive officers of the new bank, which will retain the name Deutsche Bank AG while adopting Dresdner Bank’s green corporate color over Deutsche’s blue.
The new, combined bank would focus on investment banking and asset management, areas traditionally dominated by U.S. investment houses. At the same time, a merged entity would free the banks from their unprofitable retail services. The banks intend to close branches and put an emphasis on electronic banking.
The retail activities of both institutions will be merged into Deutsche Bank 24, and Deutsche Bank 24 will go public within the next three years. The insurance giant and holding company Allianz AG will take a minority stake in the retail bank, which also will take control over Deutsche Bank’s insurance activities.