Germany’s DZ Bank has signed a memorandum of understand with WGZ Bank to create Germany's third largest bank by assets, reports Thomson Merger News.

The combined company will use the DZ Bank name, and would have €520 billion worth of assets, be headquartered in Frankfurt. According to TMN, there would be annual cost-savings of between €100 million and €200 million.

The MoU "is an important first step on the way towards the merger,” said Wolfgang Kirsch, ceo of DZ Bank.

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