Bank of America, HSBC to merge
By Chris O’LearyThe bank of America has announced that it will merge with HSBC in a $6.7bn deal that could result in a global banking conglomerate that includes many of the world’s biggest banks.
The merger will bring together a global bank with a U.S. operations and assets that total more than $400 trillion, according to the bank.
“We’re pleased to continue our close relationship with the HSBC Group, a leader in banking and financial services, for decades to come,” said Jamie Dimon, CEO of the bank of Americans, in a statement.
“As a result of our partnership, we will create a bank with strong business operations in every country in the world, and continue to deliver value for our shareholders.”
The combined bank would be the largest global banking company, and the bank’s shares are up 6% on Wednesday.
The bank is a global leader in credit card and money transfer services, including Visa, Mastercard, American Express, American International Group and Discover.
It operates about 3,000 branches and offers its services in more than 80 countries.
The move will help the bank reach a growing number of customers, many of whom rely on credit cards, according the Wall Street Journal.
It is also a boost for the bank as it looks to expand its business overseas.
“This is a historic transaction and a critical milestone for the banking industry,” said Gary Gensler, a partner at the law firm DLA Piper who represents a number of large financial institutions including Wells Fargo and Bank of New York Mellon.
“The combined banking entity will allow the bank to continue to serve its customers while developing a strong presence in the emerging markets and global economy,” Gensberg added.
The deal follows the merger of Barclays and HSBC last year that also included the creation of a UBS subsidiary.
The bank’s U.K. unit is expected to join the merger as well.
The U.k. branch of the new bank is expected by the end of the year, according Reuters.