The Federal Reserve governing board announced Wednesday its approval on the buyout of Merrill Lynch (MER) by Bank of America (BAC).
The acquisition of New York-based Merrill Lynch, one of the premier wealth management and advisory companies, allows BofA to create a unique financial services firm. Merrill has total consolidated assets of approx. $875 billion and controls deposits of nearly $78 billion, which represent 1.1% of the total amount of deposits of insured depository institutions in the country. Bank of America, with total consolidated assets of $1.8 trillion, remains, on consummation of the proposal, the largest depository organization in the U.S, with total consolidated assets of approx. $2.7 trillion.
BofA agreed to acquire Merrill Lynch on Sept. 15, in a $50 billion or $29/share, all-stock transaction, after the firm’s sharp decline in share price pressured the co. to find a merger partner as its liquidity began to rapidly dissipate.
The combining of the two companies creates a firm unrivaled in its breadth of financial services and global reach. By adding Merrill’s more than 16,000 financial advisers, BofA now has the largest brokerage in the world with more than 20,000 advisers.
Charlotte, NC-based Bank of America, expects to close the transaction by the end of current fiscal year, pending shareholder and additional regulatory approvals.
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