Commerzbank likely to give up Frankfurt HQ as it focuses on cost cutting - report

[Entrance to the Commerzbank]
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Commerzbank (OTCPK:CRZBF [https://seekingalpha.com/symbol/CRZBF]) is planning to exit its landmark Frankfurt headquarters as part of a significant cost-cutting initiative aimed at improving profitability and defending against ongoing pressure from UniCredit (OTCPK:UNCFF [https://seekingalpha.com/symbol/UNCFF]) (OTCPK:UNCRY [https://seekingalpha.com/symbol/UNCRY]) as it seeks a potential takeover, the _Financial Times_ reported, citing people familiar with the matter.

The bank has begun discussions with Samsung SRA Asset Management, the building's owner, regarding alternatives that could result in it extending its lease or vacating when it expires in 2032, the report added [https://www.ft.com/content/5d3de63e-4520-45db-b656-2fd9ec8af343].

Earlier this year, the German lender (OTCPK:CRZBF [https://seekingalpha.com/symbol/CRZBF]) said that it will rent more than 73,000 square meters in the Central Business Tower, which is under construction and expected to be completed in 2028. Commerzbank described the new skyscraper, alongside its existing tower hosting 2,900 workplaces, as “an important new anchor for the bank’s headquarters in downtown Frankfurt”.

The discussions take place as the bank looks to simplify operations following UniCredit's increase in ownership to over 29%. The lender intends to cut roughly 3,300 jobs in Germany.

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