Deutsche Postbank set for sale (GER)
Deutsche Post is ready to sell Postbank and is expected to begin a formal sales process for the euro 10bn (USD 15.7bn) business within days, insiders say.
The move will herald a summer of dealmaking in Germany’s banking sector after Citigroup received a number of non-binding offers last week for its German retail business at the first stage.
International and domestic banks have expressed interest in both Postbank and the Citigroup operation, which are among the largest retail businesses in the fragmented banking sector.
A person with knowledge of Deutsche Post said “final discussions” were imminent about the future of Postbank
Deutsche Post has already had informal approaches since its former chief executive hinted that Postbank could be sold. Frank Appel, Deutsche Post’s new chief executive, has confirmed that Postbank should play an active role in banking consolidation and admitted his shareholders would reject further involvement in banking.
The postal and logistics group owns 50 per cent plus one share of Postbank, the former post office savings bank that is separately listed since an initial public offering in 2004.
Most analysts expect Postbank will be bought by a German lender, with Deutsche Bank and Commerzbank, the two largest domestic banks, among those to have shown interest.
Allianz, the insurer, has also considered a bid for Postbank. One option jointly discussed by Commerzbank and Allianz is for a three way tie-up involving Commerzbank, Postbank and Dresdner Bank, Allianz’s banking subsidiary. However, bankers believe such a deal would be complex.
Deutsche Post is ready to sell Postbank and is expected to begin a formal sales process for the euro 10bn (USD 15.7bn) business within days, insiders say.
The move will herald a summer of dealmaking in Germany’s banking sector after Citigroup received a number of non-binding offers last week for its German retail business at the first stage.
International and domestic banks have expressed interest in both Postbank and the Citigroup operation, which are among the largest retail businesses in the fragmented banking sector.
A person with knowledge of Deutsche Post said “final discussions” were imminent about the future of Postbank
Deutsche Post has already had informal approaches since its former chief executive hinted that Postbank could be sold. Frank Appel, Deutsche Post’s new chief executive, has confirmed that Postbank should play an active role in banking consolidation and admitted his shareholders would reject further involvement in banking.
The postal and logistics group owns 50 per cent plus one share of Postbank, the former post office savings bank that is separately listed since an initial public offering in 2004.
Most analysts expect Postbank will be bought by a German lender, with Deutsche Bank and Commerzbank, the two largest domestic banks, among those to have shown interest.
Allianz, the insurer, has also considered a bid for Postbank. One option jointly discussed by Commerzbank and Allianz is for a three way tie-up involving Commerzbank, Postbank and Dresdner Bank, Allianz’s banking subsidiary. However, bankers believe such a deal would be complex.
Eric Strutz, Commerzbank’s chief financial officer, said last week: “The three-way merger is one of 23 options and if one of those comes, we would be happy It all depends on the timeframe for integration.”
The Verdi trade union has warned it will try to hinder a Postbank sale, fearing job cuts. Some Postbank staff are still in protected civil service jobs.
Germany’s government, via a stake of 31 per cent in Deutsche Post, has a significant say over the future of Postbank, including the right to veto a sale. This right of veto expires early next year.
Deutsche Bank and Commerzbank also remain interested in a sale of Citigroup’s retail bank in Germany. But there are doubts over whether these operations – mainly a consumer credit business with 3.25m customers – are a good strategic fit.
