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COMMERCE - Deutsche Bank and Commerzbank in Government approved merger talks

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Germany's two largest financial institutions Deutsche Bank and Commerzbank have convened formal talks about a merger ending months of speculation. A merger could result in massive cost savings, in particular by closing branches. But critics say integrating the firms would be "complicated and risky". 

The German government which owns a 15.5% stake in Commerzbank, acquired after the bank was bailed out following the financial crisis, seems to be in favour of a deal. German Finance Minister Olaf Scholz has urged the two to consider merging, as he believes Germany needs a national champion in the banking sector. Combined the banks would have one fifth of Germany's High Street banking business and control €1.8 trillion of assets, such as loans and investments.