Deutsche Bank has offered to buy German bank Deutsche Postbank in a deal valuing the latter at around €24 (around $30.8) to €25 per share, the Frankfurt-based financial services giant said today.

The move comes after months of media speculation and commentary that Deutsche Bank was considering such a move for the retail bank.

Deutsche Bank currently holds 29.95 per cent of the shares of Deutsche Postbank.

In its statement, Deutsche said it intended to raise at least €9.8 billion in fresh capital linked to its M&A move. “The capital increase is primarily intended to cover capital consumption from the planned Postbank consolidation, but will also support the existing capital base to accommodate regulatory changes and business growth,” Deutsche Bank said in statement.

“Through this capital increase, Deutsche Bank intends to secure the equity capital required for a planned consolidation of Postbank. As a result, we can expand our strong position in our home market, take a leading position in the European retail banking business and significantly enhance Deutsche Bank’s revenue mix,” said Josef Ackermann, chairman and chief executive at Deutsche Bank.