Bank of America agrees to purchase Merrill Lynch

FWR Staff

14 September 2008

Megabank, giant brokerage in merger deal said to be valued at $44 billion. Bank of America has agreed to buy Merrill Lynch for about $50 billion, according to an article posted on the Wall Street Journal's website at about 9:30 p.m. today.

The deal has been approved by the boards of both firms, says the Journal.

The combination of Charlotte, N.C.-based Bank of America and New York-based Merrill isn't expected to run into significant regulatory hurdles.

Bank of America is the biggest bank in the U.S. by deposits; Merrill is the biggest retail brokerage in the world in terms of number of advisors and assets under management.

At $29 a share, the $44-billion price tag on the deal would be a 71% premium on Merrill's closing share price on Friday. Merrill's stock is nearly 80% off its 52-week high; since Labor Day its share price has fallen by about 40%. -FWR

Purchase reproduction rights to this article.