Commerzbank Plans 9,600 Job Cuts, Deutsche Post to Buys UK Mail

Sarla Buch
29 Sep, 2016
New York City

Commerzbank plans to reduce 9,600 jobs. Deutsche Post DHL agreed to buy the UK Mail for

[R]4:00 PM Frankfurt – Commerzbank plans to reduce 9,600 jobs. Deutsche Post DHL agreed to buy the UK Mail for £243 million. European regulators opened investigation into the proposed $28 billion merger of Deutsche Boerse and LSE.[/R]

In London trading, FTSE 100 index jumped 70.01 or 1% to 6,919.42 and in Frankfurt the DAX index slipped 56.38 or 0.5% to 10,381.93.

In Paris, CAC 40 index increased 6.64 or 0.2% to 4,439.09.

Commerzbank AG dropped 2.1% to €5.87 after Germany-based bank said its plans to reduce 9,600 jobs but the bank will create 2,300 new jobs in areas of business growth

The second largest German bank also said cost of restructuring to be about €1.1 billion and the bank will scrap its dividend “for the time being.”

The bank forecasted revenues in 2020 to total between €9.8 and €10.3 billion and revenues could rise to above €11 billion if interest rates are normalized while cost/income ratio may decline to around 60%.

Deutsche Post AG slipped 0.4% to €27.58 after Germany-based logistics services provider unit Deutsche Post DHL Group agreed to acquire the UK Mail Group plc in cash offer for £4.40 per share or £242.7 million representing a premium of 43.1% over the closing price of September 27.

Deutsche Boerse AG rose 0.1% to €71.12 after Germany-based exchange operator and London Stock Exchange Group plans to sell its French clearing business after European regulators opened an “in-depth” investigation into the proposed $28 billion merger.

The European Commission is likely to conclude its investigation and issue the decision by February 13.

Shanks Group Plc soared 6.5% to 107 pence after the U.K.-based waste recycler agreed to buy Netherlands-based recycler Van Gansewinkel Groep BV for €482 million or $540.80 million on a debt-free cash-free basis.

SAP SE decreased 0.9% to €80.58 after Germany-based application software developer plans to invest €2 billion or £1.72 billion in the next five years for the expansion of its Internet of Things and Big Data businesses.

The software developer also plans to acquire Italy-based IoT firm Plat.One.