Deutsche Bank has confirmed it is to buy nearly 30 percent of Germany’s biggest retail lender PostBank.
It will pay the German post office Deutsche Post around just over 57 euros a share now, nearly 10 euros a share more than the current market value.
Deutsche Bank CEO Josef Ackermann made the announcement:
“Deutsche Bank will acquire a minority holding in PostBank of 29.75 percent and will thus become the largest shareholder,” he said.
PostBank boss Frank Appel outlined what his group had to gain:
“We are creating value for us, value for the Deutsche Post and we are focussing on our main business as the global market leader in the logistics and letter sector.”
As a result Deutsche Bank doubles its client base to a combined 28 million customers. That puts distance between it and rival Commerzbank, which bought Dresdner Bank earlier this month.
And the 30 percent acquisition is only the start: it intends to buy more shares and complete a full takeover at a later date.
But it will have to raise two billion euros from new shares just to fund the latest deal and such a complicated agreement has drawn criticism from some analysts.
Some see it as a defensive move, to stave off interest in PostBank from rivals.
Shares in Deutsche Post rose three percent on the news as shareholders look forward to their cash windfall.