Deutsche Bank’s market basket: €7.5bn for 2019, €4.8bn for 2020
By Andrew WalkerDETROIT (Reuters) – The biggest German bank in the world is buying some of the biggest U.S. banks for its own and is now using its leverage to buy some of them.
Deutsche Bank said on Monday it had bought U.A.E. rival UBS Group and Credit Suisse Group in a deal worth $6.9 billion in what is the biggest acquisition of U.K.-based banks by any of its rivals.UBS, the biggest German lender, said in a statement it would pay about $1.1 billion for its stake in UBS.
The deal is part of a broader effort by Deutsche Bank to diversify its portfolio and make the biggest bank in Germany one of its biggest shareholders.
U.S.-based Bank of America Corp is the only U.T. group still in the German market.
The U.N. agency for trade and development, the World Bank, is also part of the consortium, which is buying other U.J. firms including KBR and TD Bank AG for $2.5 billion each.
Deutschlandbank, the world’s second-largest lender by assets, is a major buyer of UBS and Credit Equities Group.
The German bank has also agreed to buy UBS, its biggest lender by market value, and UBS subsidiary Credit Suise Group.
A spokesman for the U.UK group said on Friday the banks would have to make further changes to the companies structure to be eligible for the deal.
“We are working on this in the coming weeks,” said the spokesman, Matthew Wilson.
“It will be important to ensure that this transaction does not lead to a loss for U.B.K., but also does not harm U.U.-based credit, which was the primary target of the UBS acquisition.”
The Deutsche Bank acquisition of Credit Suis Group, which makes lending to businesses in the UGB, will provide credit in the business sector and the consumer sector.UGB is an affiliate of Credit Equity Group and a subsidiary of Deutsche Bank.
Credit Suisse is the largest U.SA group and has a market capitalization of more than $4.2 trillion.