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Commerzbank, in u-turn, opts to hold on to mBank after all

FILE PHOTO: A company logo is pictured at the headquarters of Germany's Commerzbank AG during the annual results news conference in Frankfurt, Germany, February 13, 2020. REUTERS/Ralph Orlowski

FRANKFURT (Reuters) - In an expected u-turn, German lender Commerzbank CBKG.DE said on Monday that it would not sell its Polish subsidiary mBank MBK.WA, citing poor market conditions.

The planned sale, a cornerstone of the Commerzbank’s turnaround plans, had been hitting roadblocks in recent months as some potential buyers walked away, casting doubt on the success of any deal, Reuters had reported.

MBank’s share price has fallen more than 50% since the beginning of the year, meaning Commerzbank’s 69.3% stake is valued at just around 1.2 billion euros ($1.3 billion), down from well over 2 billion euros earlier this year.

“Under the current market conditions, which are dominated by the coronavirus crisis, a transaction doesn’t seem feasible at reasonable terms,” Commerzbank said.

Reporting by Tom Sims; editing by Thomas Seythal

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