Commerzbank AG and Allianz SE have agreed upon the sale of 100 % of Dresdner Bank AG to Commerzbank for approximately EUR 8.8 billion.
In addition Allianz receives a payment into a trust solution for specific ABS assets of Dresdner Bank of up to EUR 975 million. The Supervisory Boards of Commerzbank and Allianz approved the agreement in their meetings on 31 August 2008. The transaction will occur in two steps and is expected to be completed by the end of 2009 at the latest, subject to regulatory and antitrust approvals.
“We are taking advantage of a unique opportunity to make Commerzbank the leading bank for private and corporate customers in Germany,” says Martin Blessing, the bank’s chairman of the board of managing directors. “We are building a market leader with European significance, and are creating added value for our shareholders. At the same time, the deal will secure many attractive jobs for the long term, even though unfortunately we cannot keep all current positions.”
The new Commerzbank will focus on the following segments: Private and Business Customers, Mittelstandsbank, Central and Eastern Europe, Corporates & Markets (including Public Finance) and Commercial Real Estate. Commerzbank will continue with the business model it has developed during recent years. Its strategic positioning as a customer oriented provider of financial services with a focus on Germany and a strong foothold in Central and Eastern Europe will also remain intact. The Private and Business Customers, the Mittelstand businesses and the activities in Central and Eastern Europe will continue to be the key drivers for growth. The two institutions represent strong household brand names that will be intergrated during the course of the integration.
In the corporate customers segment, the German bank for small and medium-sized enterprises (known as Mittelstand) will also further strengthen its position. Following the acquisition, a total of approximately 100,000 corporate customers will be served. With its focus on the specific requirements of the German market, the Bank continues to be a trusted longterm partner for companies and entrepreneurs. In addition, the corporate customers business will also be combined, based on the business model developed by Commerzbank.
Corporates & Markets will in future also include the Public Finance activities and will maintain its focused, customer-driven organization and its conservative approach to risk. Dresdner Kleinwort’s comparatively broader activities will be reduced.
In the first step Commerzbank is expected to acquire at least 60.2 % of the Dresdner Bank shares by the start of 2009 at the latest. Allianz in turn will receive approximately 163.5 million new Commerzbank shares, representing a stake of approximately 18.4 % in Commerzbank. Based on the XETRA one month volume weighted average price (EUR 20.80 per share), these shares are worth around EUR 3.4 billion. In addition, Commerzbank will pay about EUR 1.6 billion in cash. Furthermore Commerzbank sells significant parts of its asset management activities (cominvest) to Allianz for EUR 700 m. Commerzbank in turn receives shares in Dresdner Bank.