Deutsche Bank watchdogs said to favour Europe deal for lender

Deutsche Bank’s key regulators would prefer the lender merge with a European rival rather than local competitor Commerzbank, setting them apart from forces in the government keen on an all-German deal.

The European Central Bank favours a cross-border combination to drive integration in the region’s financial markets, according to people familiar with the matter. Analysis by German regulator BaFin suggests a preference for a European deal because the two domestic banks are currently ...