Deutsche Bank, Guggenheim end negotiations over RREEF sale
GLOBAL - Deutsche Bank has confirmed it has broken off negotiations with Guggenheim Partners on the sale of its RREEF real estate subsidiary, with almost €50bn in assets under management.
In a statement, Deutsche Bank said: "The parties were unable to agree on terms for the sale of the business and mutually agreed to end exclusive negotiations."
It also announced that it had concluded the strategic review of its asset management business announced in November last year by former chief executive Josef Ackermann.
RREEF had been the last of the bank's asset management divisions put up for sale after Guggenheim Partners withdrew from negotiations on the other subsidiaries - including DB Advisors and parts of the DWS business - in May.
Deutsche Bank's new management under Anshu Jain and Jürgen Fitschen announced two weeks ago that they would unveil the bank's long-term strategy in September after holding talks with shareholders and other stakeholders.
At the time, it said its new asset and wealth management division would "stand equally" beside its remaining banking divisions - including corporate banking and securities, global transaction banking, and private and business banking clients - and argued the bank would be "strengthened" by the new arrangement.
In the past, the bank has said that DWS's German, European and Asian retail businesses - strengthened by the transfer of nearly €7.7bn in assets from Postbank in mid-June - would remain a "core part" of its business.