By Eyk Henning

FRANKFURT--Berenberg Bank and BayernLB are teaming up in the area of corporate finance, aiming to profit from a wave of expected mergers and acquisitions in the coming years.

"Interest rates will remain low [in Europe] over the next two or more years and German companies will take advantage of it by financing acquisitions" to improve their global reach, said Hendrik Riehmer, a managing partner at privately held Berenberg.

The cooperation should strengthen the banks' deal-brokering power, after neither ranked among the top ten banks collecting investment banking fees in Germany last year. That ranking was dominated by Deutsche Bank, followed by Goldman Sachs Inc. and JP Morgan, according to data provider Dealogic.

At a news conference with Mr. Riehmer, BayernLB board member Michel Buecker said the banks would "offer a full range of advisory services and form a credible alternative" to larger rivals by combining BayernLB's debt capital market operations with Berenberg's equity and M&A activities. The banks plan to dedicate a handful of senior bankers to pitching deals to corporate executives in Germany.

Low interest rates should fuel corporate appetite for deals, although fee income declined in Germany last year. Despite a few large deals, including Merck KGaA's acquisition of U.S.-based Sigma Aldrich, overall fee volume for the top ten investment banks advising on Germany-related transactions fell to $550 million last year from $690 million, according to Dealogic.

"Many German companies have told us they'd like an alternative to large U.S. banks, which seem to be closer to investors than to companies when advising on bond or equity issues," BayernLB's Mr. Buecker said. Both bank managers said they saw potential to jointly advise on up to 20 transactions annually. Mr. Riehmer said the banks would target deals valued between 500 million and 1.5 billion euros ($597 million-$1.79 billion).

Write to Eyk Henning at eyk.henning@wsj.com

Access Investor Kit for Merck KGaA

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=DE0006599905

Access Investor Kit for JPMorgan Chase & Co.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US46625H1005

Access Investor Kit for Merck KGaA

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US5893391004

Building Materials## (NYSE:BLG)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Building Materials## Charts.
Building Materials## (NYSE:BLG)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Building Materials## Charts.