The combination is also focussed on debt and equity underwriting, sales and trading and merger & acquisition advice
Bank of America has completed its purchase of Merrill Lynch, creating a financial services franchise with significantly enhanced wealth management, investment banking and international capabilities.
Bank of America said that it will have the largest wealth management business in the world with approximately 20,000 financial advisors and more than
$2 trillion in client assets. Global investment management capabilities will include approximately 50% ownership in BlackRock.
According to Bank of America, 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 the terms of the agreement, shareholders of Merrill Lynch received
0.86 shares of Bank of America common stock for each common share of
Merrill Lynch.
Ken Lewis, chairman and CEO of Bank of America, said: We created this new organisation 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. We are now uniquely positioned to win market share and expand our leadership position in markets around the world.
The company is expected to benefit by leveraging its broad product set to deepen relationships with existing Merrill Lynch customers.