German investment management firm Allianz Global Investors, a unit of Allianz SE, is planning to combine with DWS, a subsidiary of lender Deutsche Bank.

Allianz is considering combining its $573.3 billion investment arm with DWS to establish a business with $1.3 trillion in assets under management.

Deutsche Bank will retain a 78 percent stake in DWS.

The transaction could help Deutsche Bank finance a merger with German peer Commerzbank AG.