Deutsche Bank has confirmed it is in advanced talks to buy a stake in rival Deutsche Postbank. German media reported it will take 29.75% .
Deutsche Bank’s Chief Executive Josef Ackerman had said he would buy into Postbank “for the right price.”
Postbank has almost 15 million customers and a market value of over seven billion euros.
Bank industry analyst Stefan Scharffetter welcomed the idea: “Looking at Postbank’s retail business and its distribution-channels, it makes sense for Deutsche Bank to take a holding in Postbank. It would compliment Deutsche’s retail business. As far as Postbank’s parent company, Deutsche Post, is concerned, they can cover the financial losses they made through investments in the US and it makes sense to sell part of their banking business.”
Deutsche Post owns just over half of Postbank. By keeping its initial stake below 30%, Deutsche Bank would not have to make a mandatory takeover offer, but could move to win control of the group later.
It is not clear if Spain’s Banco Santander is also still interested in Postbank.