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Daily Insurance Industry News
Tuesday 23rd of January 2018
August 29, 2008

Allianz awaits Commerzbank bid for Dresdner Bank

by Gill Montia

Story link: Allianz awaits Commerzbank bid for Dresdner Bank

Allianz awaits Commerzbank bid for Dresdner Bank

Allianz is understood to be finalising the sale of its Dresdner Bank subsidiary to Commerzbank, Germany’s second largest bank.

In March of this year, Munich-based Allianz restructured its Dresdner business, which includes investment division Dresdner Kleinwort, in preparation for a sale.

Allianz acquired Dresdner Bank in 2001 and while the latter’s private and corporate business has produced sound results since the advent of the credit crisis, writedowns by investment division, Dresdner Kleinwort, have dented the insurer’s profits.

Commerzbank is understood to be finalising a bid for Dresdner Bank this weekend and analysts are predicting that a merger with Dresdner could create a strong rival to Germany’s market leader, Deutsche Bank.

China Development Bank (CDB) and Lloyds TSB have been mentioned in connection with the sale but the trail has gone cold on both prospective purchasers.

In the case of CDB, it is possible that recent tensions between Beijing and Berlin will leave a bid from Commerzbank unchallenged.

Dresdner is one of the larger retail banking operations in Europe; the price tag for the entire business is an estimated €9 billion.

 

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