Bloomberg reports that shares in Commerzbank posted their biggest monthly gain in a decade in November as speculation grows that the bank is likely to merge with rival HVB Group.
Commerzbank shares jumped almost 30% in November and the smart money is on a merger between the two German banks, both of whom are struggling in the current difficult markets. A key player in any deal between the two parties is Munich Re, which owns 10.4% of Commerzbank and 26% of HVB. A Munich Re board member has now confirmed that the reinsurer would not stand in the way of a merger.
A further round of consolidation in the Germany banking industry is seen as inevitable and a merger between Commerzbank and HVB would make sense as the two have complimentary strengths.
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