Deutsche Bank: reportedly in past merger talks with UBS
(CercleFinance.com) - In June Deutsche Bank and UBS studied potentially merging, particularly through a merger of their investment banking businesses, before finally abandoning the project, we learn in an article published in the Wall Street Journal on Monday.
Talks between the German bank and its Swiss counterpart show how the current economic environment - marked by negative interest rates and a slowdown in growth - are penalizing banks, the WSJ explains.
It appears that negotiations failed because of disagreements over the structuring and distribution of capital.
Earlier this year, Deutsche Bank and UBS reportedly discussed a global merger project, although once again this was without success.
However, this speculation around a European concentration in the sector have apparently failed to boost the shares. In Frankfurt, shortly after 10 am, Deutsche Bank shares is down 0.5%, while in Zurich, the UBS share is down just over 1%.
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