Merger failed: VR Bank and Raiffeisenbank remain independent

Created: 01/26/2022, 17:37

By: Stefan Weinzierl

The intended merger of VR Bank München Land based in Oberhaching and Raiffeisenbank Isar-Loisachtal from Wolfratshausen will not materialize for the time being.

© michael krosny, VR Bank

The intended merger of VR Bank München Land based in Oberhaching and Raiffeisenbank Isar-Loisachtal from Wolfratshausen will not materialize for the time being.

District

- As both cooperative banks announced, the financial institutions will remain independent for the foreseeable future.

"After an intensive and careful examination of the future strategic, procedural and organizational framework, the decision-making bodies of both companies have come to the mutual conclusion that they are currently not holding any further talks aimed at a merger," says a press release published yesterday.

As Andreas Müller, CEO of VR Bank München Land, explained when asked by Merkur, the negotiations had started promisingly, and difficulties only arose with detailed questions.

"The ways of thinking are very different for some topics in the procedural area," says Müller.

No compromise could be found for this.

Too many differences

As an example, he cites work processes and the distribution of tasks, which - although both cooperative banks - are very different.

The same applies to the branch organization.

Overall, there were concerns that compromises or innovations would have been difficult for their own employees to accept.

"But we don't want to lose any employees," emphasizes Müller.

Ultimately, it turned out that the merger not only offered advantages, but also risks.

"At some point you have to be honest and say that it doesn't make any sense at the moment."

mutual decision

Müller emphasizes that they did not part in a dispute, but that the decision not to merge for the time being was made by mutual agreement.

Both banks would now face the current challenges of the market.

"But the topic of fusion is not over once and for all," emphasizes Müller.

This is also confirmed by Uwe Massong, CEO of Raiffeisenbank Isar-Loisachtal.

There will also be further discussions in some areas.

On the one hand, of course, it is a pity about the synergy effects that would have resulted from a merger, according to Massong.

On the other hand, the merger plans were not born out of necessity.

Massong: “We don't have to merge.

Both houses are doing very well financially.”