The Deutsche Bank and Commerzbank merger have been quite a hot topic for a long time now. The reasons why these two banking giants want to merger their operations have not been fully disclosed, unfortunately. The only reasons that were told to the investors was a vague “increase revenue” statement, which nobody really believes.

After further suspicion and unconfidence in the merger, some members of Deutsche bank itself have protested about the motion. They are even calling it nonsense in the wake of an upcoming recession according to various financial experts.

Shareholders not happy

Major shareholders of the company are also unhappy because of the merger. The most prominent opposition was seen from Qatari investors who poured in millions of dollars in the company. Currently, even the Qatari royal family has a stake in the German bank, holding about 6.1%.

According to Bloomberg, Deutschebank’s financial situation has been deteriorating for quite some time now. The holding that investors had have been reduced by more than one-third of their initial investment.

Why such opposition?

No matter how you look at it, the merger should be considered a good idea between two large banks. The customer base will be more centralized and the revenues will be a joint effort. However, we are seeing such staunch opposition from people who are supposed to actually benefit from the merger.

There is one deciding reason as to why these investors are opposing the merger. According to TodayTrader.com, the merger will warrant a massive sell-off of shares in order to amass enough capital to actually make it happen. This new offering of shares is going to seriously damage the already devastated investors. This one reason is enough to trump future prospects as many investors may just liquidate their assets. This liquidation will further discourage other, new investors to enter positions on a rapidly declining stock.

The estimated amount of funds required for the merger is believed to be about $9 billion. As already mentioned, these funds will require Deutschebank to sell most of its stocks. The investors will definitely not inject more funds, as they have already done so in the past, amounting to more than $34 billion in total.