A merger has long been the subject of speculation and the German government has pushed for it given concerns about the health of Deutsche which has struggled to generate sustainable profits since the 2008 financial crisis. The government holds a stake of more than 15 percent in Commerzbank following a bailout. Earlier this month a person with knowledge of the matter told Reuters that the management board of Deutsche had agreed to hold talks with Commerzbank on the feasibility of a merger.
"We are going to seriously evaluate a merger," said a person with knowledge of the matter on Sunday. "But there is no guarantee that there will be a deal in the end," the person said.
On Thursday, the supervisory boards of both banks are scheduled to hold long-planned meetings, four people with knowledge of the matter told Reuters. The status of merger negotiations is expected to be discussed. Germany's Verdi labour union has objected strongly to a possible merger between the two banks, arguing that the merged group would be a more attractive target for a hostile foreign takeover and saying that at least 10,000 jobs are at risk.
The combined workforce of the two banks is around 140,000. (Reporting by Tom Sims and Andreas Framke; Editing by Ed Taylor and Ludwig Burger and Keith Weir)