Deutsche Bank Gets Qatari Commitment For More Funds - Bloomberg

Deutsche Bank Gets Qatari Commitment For More Funds - Bloomberg:

Deutsche Bank AG won a commitment for new investment from Qatar as the troubled German lender moves toward a potential merger with Commerzbank AG.

The investment is likely to be made through the Qatar Investment Authority, the country’s sovereign wealth fund, according to people familiar with the matter, who asked not to be identified because the talks are private. Two other Qatari investment vehicles, controlled by members of the royal family and other prominent politicians, already own a stake in Deutsche Bank.

Germany is backing a Deutsche Bank merger with Commerzbank to ensure the country has a strong domestic lender to help fund the country’s export-oriented economy even during a crisis. While it’s viewed by some as an imperfect solution that forces two weakened entities together, a combination may allow Qatar to recover part of its investment in Deutsche Bank after the stock last more than half its value last year. A big domestic bank may also appeal to Qatar because of its plans to boost investment in the German economy.