German banking group Deutsche Bank has confirmed merger negotiations with domestic peer Commerzbank, ending a series of speculations.

In a statement, Deutsche Bank said that it will review strategic options in a bid to improve profitability.

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However the deal is still uncertain, the statement added.

Deutsche Bank- Commerzbank merger

Initially, talks on the possible merger of Deutsche Bank and Commerzbank kicked off in 2016 but didn’t succeed.

It was also suggested that breaking up Deutsche Bank may be the only option.

Negotiations resumed last year after the German finance ministry said that it will assess various options to bolster domestic banking sector.

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Lately, the two lenders again started re-assessing the potentiality of the merger.

The Deutsche Bank- Commerzbank merger is estimated to create a lender with more than $2trillion in assets.

The confirmation of negotiations has triggered concerns about potential job cuts among the labour unions.

Since the financial meltdown in the last decade, Deutsche Bank has been struggling to maintain its earnings. Also, the bank got entangled in several other legal issues undermining its credibility.

In a message to employees, Deutsche Bank CEO Christian Sewing said that the move is driven to remain a global bank ‘with a strong capital markets business’. He added that the Deutsche Bank continues to leading position in Germany as well as in Europe.

Commerzbank, which also confirmed the merger talks, was bailed out by the German government to avert the financial crisis.

Currently, the government owns around 15% stake in the bank.