Both the banks' CEOs say a deal would not have created sufficient benefits to offset the risks and costs of a merger.
The merger talks have come amid stiff resistance from unions and employees.
Deutsche Bank and Commerzbank started formal merger negotiations last month.
The Commerzbank share price, or the price offered in any takeover deal, would have to be some 26 euros to avoid a loss for the state.
Both German banks have struggled for years to restore their revenue growth and have thus begun merger talks.
While there’s no formal mandate to pursue a merger and other options are still being considered, Deutsche Bank CEO Christian Sewing has given up his resistance to doing a deal this year.
Speculation about a possible merger has continued despite the bank's dismissal in September.
Samsung Life has been encouraged to sell the London property by the continued demand for office space in London, according to a sales document for the building seen by Bloomberg News.