German Mittelstand state banks Bayerische Landesbank and Landesbank Hessen-Thüringen have agreed to combine their mergers and acquisitions businesses through the creation of a joint company.

The move is the first stage of a co-operation agreement between the banks. They aim to expand the M&A operations and, according to a spokesman at Landesbank Hessen-Thüringen, the plan is to have 'more and bigger deals'.