Deutsche Bank has taken a big step forward in its plan to boost its retail banking operations by successfully gaining control of Deutsche Postbank.
Two logos come together: Deutsche Bank, Postbank
Deutsche Bank said on Friday that it increased its stake in Postbank to more than 51 percent from its existing 30 percent after investors holding more than 21 percent of Germany's largest retail bank accepted its offer of 25 euros per share.
Buying all of Postbank, including the costs of acquiring its initial 30 percent stake, is expected to cost Deutsche Bank at least 6.3 billion euros ($8.4 billion).
The move allows the German financial giant to add 14 million retail clients to its existing base of about 10 million customers. It will also add 1,100 branches to Deutsche Bank's network, bringing the total number of branches to 2,900 in Germany alone.
'Balanced earnings mix'
"In the future, the Deutsche Bank Group will have more stable revenues and a more balanced earnings mix," Josef Ackermann, chairman of the bank's management board, said in a statement.
Postbank is Germany's largest retail bank with 14 million clients
Currently, Deutsche Bank generates more than 80 percent of its profits from investment banking. Last month, the bank – Germany's biggest based on assets – completed its biggest-ever share sale to fund the acquisition and increase reserves ahead of tighter regulations on capital.
Postbank will remain an independent brand, with customers experiencing no changes in their daily banking services, Deutsche Bank said.
The bank added that it will temporarily sell a small portion of Postbank shares to bring its stake below 50 percent until US antitrust authorities approve the takeover.
Author: John Blau (AP, dpa, Reuters)
Editor: Sam Edmonds