Deutsche Bank has agreed to acquire 29.75% of Postbank, Germany’s largest retail bank.
Parent company, Deutsche Post, has been in talks for weeks with potential buyers for its majority stake in Postbank and Spanish group, Santander, showed last minute interest in the sale.
However, the matter has been settled with Deutsche Bank paying €2.8 billion for one-third of Postbank.
The move is in line with Deutsche Bank’s strategy of furthering its consumer banking businesses to balance its investment banking operations.
Postbank has 14.5 million customers and 850 branches and the acquisition will allow Deutsche Bank to sell its real estate and investment services through the retail network.
The transaction values Postbank at €57.25 per share and includes an option for Deutsche Bank to buy another 18% of Postbank within 36 months, at €55 per share.
In addition, Deutsche Post has an option to sell another 20.25% of Postbank to Deutsche Bank.
Under Germany’s regulatory regime, taking a stake of over 30% in Postbank would require Deutsche Bank to make an offer for the entire business.
At this stage, no branch closures or job losses are anticipated.