German Ambitions Evaporate as Deutsche Bank Merger Talks With Commerzbank Collapse

German Ambitions Evaporate as Deutsche Bank Merger Talks With Commerzbank Collapse
The corporate headquarters of Deutsche Bank (C) and Commerzbank (back, R) in the financial district in Frankfurt, Germany, on March 20, 2019. Thomas Lohnes/Getty Images
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FRANKFURT—German hopes of creating a national banking champion able to challenge global competitors were dashed on April 25 when Deutsche Bank and Commerzbank ended merger talks due to the risks of doing a deal, restructuring costs and capital demands.

Germany’s two largest banks announced that nearly six weeks of high-level negotiations about a tie-up had ended in failure, confirming an earlier Reuters report and immediately raising questions about the future of the Frankfurt-based rivals.