Bank of America completes the purchase of Merrill Lynch & Co. The combination creates financial services franchise with significantly enhanced wealth management, investment banking and international capabilities.
As a result of merger Bank of America possesses approximately 20,000 financial advisors and more than $2 trillion in client assets. Global investment management capabilities will include approximately 50% ownership in BlackRock Inc., which at 30 September had $1.26 trillion in assets under management. Bank of America had $564 billion in assets under management in the same period.
The combination also adds strengths in debt and equity underwriting, sales and trading, and merger and acquisition advice, creating significant opportunities to deepen relationships with corporate and institutional clients around the globe.
Under terms of the agreement, shareholders of Merrill Lynch received .8595 shares of Bank of America common stock for each common share of Merrill Lynch. Bank of America expects to achieve $7 billion in pre-tax expense savings. The company is expected to benefit by leveraging its broad product set to deepen relationships with existing Merrill Lynch customers.
“We created this new organization because we believe that wealth management and corporate and investment banking represent significant growth opportunities, especially when combined with our leading capabilities in consumer and commercial banking,” says Ken Lewis, chairman and chief executive officer, Bank of America. “We are now uniquely positioned to win market share and expand our leadership position in markets around the world.”
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