Deutsche Bank, Commerzbank unveil historic merger talks

A merger of Deutsche Bank and its rival Commerzbank could result in as many as 30,000 job cuts over the long term, a representative of German union Verdi who is a Deutsche supervisory board member told n-tv broadcaster.

Most of the 30,000 positions at risk are based in Germany, Verdi’s Jan Duscheck said, according to comments published by the TV station on Monday. Over the short term there are 10,000 jobs under threat, Duscheck added.

The fierce opposition from the union comes after both banks on Sunday confirmed talks about a merger and underlines the obstacles to efforts to combine Germany’s two biggest banks.

Shares in Deutsche Bank were up 3.4 percent at 0807 GMT while Commerzbank traded 4 percent higher.

The supervisory boards of both banks meet on Thursday and the merger is likely to be discussed.

“In our opinion a possible merger would not result in a business model that is sustainable in the long term,” Duscheck said.

source: Reuters