Cerberus took 3% Stake in Deutsche Bank, Becoming One of the Largest Shareholder

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On Wednesday, Cerberus, the U.S. buyout fund, said that it has taken a 3% stake in Deutsche Bank, which makes Cerberus one of the bank’s largest shareholders.

Currently, Cerberus became the fourth-largest shareholder in Deutsche, following China's HNA group, Qatar and Blackrock. In addition to buying stake in Deutsche Bank, the fund also bought 5% stake in Commerzbank, which was the second-largest listed bank in Germany. The combined purchases at the two banks were worth $2 billion, and Cerberus is now the second-largest investor in Commerzbank.

“We have a constructive view of European fundamentals and believe Germany is a highly attractive place to invest, in particular,” a Cerberus’s spokesman said. The company added that due to Germany’s strong economy and high savings rate, it saw long-term opportunities in retail and corporate banking

The co-deputy CEO of Deutsche Bank, Christian Sewing, also said this week that Germany was “clearly overbanked” and predicted that “there will be a wave of domestic consolidation.”

“This has fueled the fantasy of a merger between Deutsche Bank and Commerzbank, I can understand this speculation because Cerberus wouldn’t buy into German banks without reason,” a trader said.

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