German giants amalgamate
The Australian financial services arms of German financial services giants, Deutsche and Dresdner, will feel the winds of global change later this year, following the merger of their respective parent companies.
The Australian financial services arms of German financial services giants, Deutsche and Dresdner, will feel the winds of global change later this year, following the merger of their respective parent companies.
Deutsche Bank and Dresdner Bank are to merge later this year in an operation that will form one of the world's biggest financial services groups.
Deutsche Bank, Germany's largest private bank, will hold 60-64 per cent of the new entity, to be called Deutsche Bank AG, with the rest held by Dresdner, cur-rently Germany's third-ranking bank, the companies said in separate statements. July 1 has been set as the target date for completing the merger.
Allianz will hold a minority stake in the retail banking operation but reduce its direct holdings in Deutsche and Dresdner. It currently holds 21.7 per cent of Dresdner and about five per cent in Deutsche.
Both Deutsche and Dresdner have funds management operations in Australia. Deut-sche's $27 billion under management dwarfs Dresdner's $500 million under manage-ment.
While there has been no announcements as to the fate of the two operations, it is likely there will be some sort of amalgamation later this year. Deutsche's wholesale funds management operations, Deutsche Asset Management, was recently merged with its retail funds management business, Deutsche Funds Management.
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