America's Second-Largest Bank to be Created by JP Morgan, Bank One Merger
JP Morgan Chase have announced an agreement to merge with US rival Bank One for about $58bn in stock. The merged bank will become the second largest in the US with an estimated market value of about $130bn, assets of $1,100bn, and 2,300 domestic branches. In a statement, JP Morgan’s chairman and chief executive, William Harrison, said, ‘This would enable us on the consumer side to continue to participate in the consolidation process.’ According to a report in the Financial Times, JP Morgan will pay 1.32 shares for each Bank One share, valuing the Chicago-based bank’s shares at $51.77, based on a closing price of $39.22 on the day of the merger announcement. Following the announcement, Moody’s Investors Service, the ratings agency, placed all long-term ratings of JP Morgan and its subsidiaries on review for upgrade and affirmed all ratings of Bank One. Bank of America announced a $47bn purchase of FleetBoston Financial last October.