Dresdner’s acquisition by Commerzbank puts 9,000 jobs at risk
by Gill Montia
Details of the takeover of Germany’s Dresdner Bank by Commerzbank have emerged.
Dresdner’s owners, insurance giant Allianz, have sold the business for €9.8 billion, having acquired it in 2001 for €24 billion.
The transaction, which is scheduled for completion by the end of 2009, is in two parts and Dresdner will only be integrated into Commerzbank during the second stage.
The cash and share deal will leave Allianz with a 30% holding in Commerzbank, which is Germany’s second-biggest bank.
The move is expected to create cost savings of around €1.9 billion once the transition is complete and could put around 9,000 jobs at risk.
Analysts expect job cuts at Dresdner Kleinwort, the bank’s investment division, although Commerzbank has said that it will be absorbing some of the job losses.
Dresdner has so far written down €5 billion from the credit crisis and the acquisition includes the formation of a trust containing €975 million to cover further losses.
The new bank will have 1,200 branches in Germany, 11 million private customers and more than 100,000 corporate and institutional clients.