DG HYP and WL Bank pursue merger, sign Memorandum of Understanding
DG HYP and WL BANK, two real estate banks from the German cooperative banking sector, are expediting their planned merger. Having commenced merger discussions in March 2017, the two institutions have since worked out key cornerstones of the joint real estate bank, which the Management Boards of both banks have now agreed upon in a joint Memorandum of Understanding (MoU).
The strategic objective of the merger is to combine the two banks' existing areas of expertise whilst avoiding redundancy – providing clients with a one-stop shop, and in particular, to further enhance benefits for German cooperative banks. The merged real estate bank will continue to serve existing client segments – commercial real estate investors, the housing sector, public-sector clients, as well as retail customers – in the same scope and depth as today. DZ HYP will be a leading provider in all business segments. At the same time, the merger will create Germany's largest Pfandbrief issuer.
"Both institutions approach the merger from a position of financial strength. On top of this, DG HYP and WL BANK are connected by their deep integration into the Cooperative Financial Network, and their close business relationships with cooperative banks. The merger will allow us to realise synergies, in order to further boost our profitability. Moreover, we will be able to support and complement cooperative banks' local business even more effectively", said Frank Mühlbauer, Chairman of the Management Board of WL BANK.
Dr Georg Reutter, Chairman of the Management Board of DG HYP, stated: "Through the merger of DG HYP and WL BANK, we will jointly form an integrated real estate bank with a comprehensive range of products and services and a unified market presence. This will make us an even more efficient partner, strengthening the Cooperative Financial Network in the real estate finance business. Positive feedback from clients, cooperative banks and rating agencies encourage us that the merger is the right way to proceed."