German Commerzbank to retain majority stake in mBank
Commerzbank AG has decided not to sell its Polish subsidiary mBank, the German bank's head office in Frankfurt announced on Monday as reported by the dpa press agency.
Polish mBank S.A. will remain part of the Commerzbank Group. Commerzbank has decided to retain its majority stake of 69.3 percent in its Polish subsidiary and to terminate the sales process, the bank announced in a press release.
Under the current market conditions which are dominated by the coronavirus crisis, a transaction does not seem feasible on reasonable terms, Commerzbank added.
In September 2019, Commerzbank announced its intention to sell its majority stake in mBank. At the time the main objective of the sale was to significantly reduce risk-weighted assets and to release capital within the Group for a faster implementation of the Commerzbank 5.0 strategy.
"It is clear that we will only sell such a valuable asset as mBank if the terms are right. The current market environment which is marked by the corona crisis, does not allow for an attractive valuation in line with the underlying value of mBank," Bettina Orlopp, Chief Financial Officer of Commerzbank said Monday. "Our strong capital position gives us the leeway to implement our Commerzbank 5.0 strategy and make the planned investments without the need to sell mBank," Orlopp added.