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Merger talks between Germany's top two lenders, Deutsche Bank and Commerzbank, have ended in failure.
"We have concluded that this transaction would not have created sufficient benefits to offset the additional execution risks, restructuring costs and capital requirements associated with such a large-scale integration," Christian Sewing, chief executive officer of Deutsche Bank, said in a statement Thursday morning.
Reports about a merger between the two German lenders had been rife for months, heightening under the tenure of German Finance Minister Olaf Scholz, who has spoken out in favor of strong banks for the European nation. But there's been criticism too since it may lead to job losses.
A banking industry source with knowledge of the matter, who preferred to remain anonymous, told CNBC last month that there was not widespread support for the merger within Deutsche Bank.
"The general feeling is that the merger is not a great idea since Commerzbank doesn't have the same amount of credibility on the street as Deutsche Bank when it comes to clients and this can impact future trades," the source said.
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