GERMANY - Allianz said today the integration of Commerzbank's €57bn asset management arm Cominvest will make its asset management offering, Allianz Global Investors (AGI), the largest asset manager in Germany.

As part of a deal brokered over the weekend between Commerzbank and German insurer Allianz, Cominvest will be completely integrated into AGI as a strand to the all-German merger between Commerzbank and Allianz's Dresdner Bank.

A person familiar with the matter told IPE today after the integration it is likely to be business as usual for the asset manager, which currently manages €57bn but half of which is European institutional money.

According to an Allianz spokeswoman, it is still too early to say which route AGI will take with Cominvest, as no plans have yet been announced and it is unclear whether Commerzbank's Alternative Investment Solutions, part of the bank, will be also swept up by AGI, which currently has around €269bn in assets under management.

Commerzbank yesterday said it planned to merge its investment banking operations with Dresdner Kleinwort's, and concentrate on their German corporate clients. (See earlier IPE story: All-German deal to shrivel Dresdner Kleinwort)

The two institutions confirmed the Europe-focused investment bank will be reduced, while "overall the new bank will strengthen its leading position as investment bank for German companies."

Commerzbank's shares also fell more than 10% yesterday, reflecting investors' concers over the €9.8bn acquisition of Dresdner Bank, as Commerzbank plans to cut 9,000 job cuts by 2011.

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