Commerzbank Nears Deal to Outsource Equities Trading to Oddo BHF
(Bloomberg) -- Commerzbank AG is close to announcing an agreement to outsource equities trading and research to Oddo BHF SCA as Chief Executive Officer Manfred Knof pushes ahead with more cuts to the bank’s securities business.
The German lender may announce details of the deal as early as Tuesday, people familiar with the matter said. The decision will affect a little under 100 staff, they said, asking not to be identified discussing the private information.
Knof in February unveiled a four-year turnaround plan that including cutting about a quarter of the domestic workforce. As part of that effort, he’s seeking to further cut the investment banking capabilities as he focuses on serving smaller clients within Germany who don’t require the same services as larger corporations.
Representatives for Commerzbank and Oddo BHF declined to comment.
Commerzbank announced its intention to outsource equities trading as part of the strategy overhaul in February, saying it will offer such services through cooperations with other firms. Other investment bank offerings such as advice on acquisitions and raising equity capital will also be scaled back.
For Oddo BHF, the deal will continue a string of partnerships signed by the Paris-based lender over the past few years, including with ABN Amro Bank NV and Natixis SA.
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