Big Deals

Deutsche Bank Profits From Urge to Merge

Jürgen Fitschen
Deutsche Bank's Jürgen Fitschen. The bank is making a killing on the current mergers boom.
  • Why it matters

    Why it matters

    The merger outlook mirrors the situation in the years before the 2008 financial crisis, when the loans for takeovers were cheap, investor’s pockets were bulging, and companies were sold for big money.

  • Facts

    Facts

    • The volume of mergers and aquisitions with foreign companies targeted by German firms rose just over 350 percent to $60.3 billion.
    • The recent $12.4 billion acquisition of TRW Automotive by ZF Friedrichshafen was the biggest supplier industry deal in six years.
    • In Germany, fee revenues for banks in the first three quarters of 2014 amounted to $1.8 billion, an increase of 13 percent.
  • Audio

    Audio

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Huge initial public offerings and billion-dollar mergers and acquisitions are lifting investment banker spirits. In Germany alone, fee revenues in the first three quarters of 2014 amounted to $1.8 billion, or €1.4 billion, an increase of 13 percent. Deutsche Bank kept its top position with $225 million in the third quarter, followed by Commerzbank and Goldman Sachs.

“This year, we are seeing events on the M&A market liven up considerably,” said Berthold Fürst, who is responsible for domestic merger and acquisition activities for Deutsche Bank. “The increase in big transactions has also been evident in Germany since the summer of last year.”

A recent example was the acquisition of U.S. competitor TRW Automotive by ZF Friedrichshafen for $12.4 billion – the biggest supplier industry deal since Schaeffler’s takeover of Continental six years ago.

“XXL acquisitions” have become a trend and German companies are on an international shopping spree. In the year to date, the volume of mergers and acquisitions with target companies abroad has risen just over 350 percent to $60.3 billion.

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