German Banking Takeover Battle Hotting Up

by Stewart Douglas

Story link: German Banking Takeover Battle Hotting Up

Takeover activity within the German banking industry could be set to pick up more momentum following a bid from Deutsche Bank declaring interest in acquiring Deutsche Postbank, following several other moves for the bank in recent weeks.

Deutsche Bank today announced that they were potentially interested in bidding for Deutsche Postbank, just months after their main rivals Commerzbank through their hat into the ring by similarly expressing an interest in acquiring the business.

Parent company Deutsche Post, which owns Postbank as a wholly held subsidiary, has suggested that it is not willing to listen to offers for the company at this time, although it is expected that a sale will proceed over the course of 2008.

With over 15 million customers Deutsche Postbank is the country’s largest lender of consumer mortgages, valued in excess of £6 billion.  Speaking today on the potential acquisition, Josef Ackermann from Deutsche Bank said he would not be quick to rule out any eventuality, implying heavily that the company would be interested in moving to acquire Deutsche Postbank over the coming months.

The move sees takeover activity in the finance industry pick up after several notable acquisitions in recent months in both the banking and private equity sectors.  The latest approach, it is thought, could eventually end up in a bidding war between both sides as they vye for Deutsche Postbank over the course of the next few months.

Meanwhile shares in Deutsche Postbank were today up by as much as 2% on the presumption that a takeover approach may be just around the corner.  It is anticipated that the company will be sold after the German postal market deregulates early in 2008, as Deutsche Post looks to consolidate its position within the courier and mail handling markets.