CHARLOTTE and WINSTON-SALEM, N.C., -- First Union Corp. entered a definitive agreement to acquire Wachovia Corp. for $13.4 billion in common stock. First Union will exchange two common shares for each Wachovia share, creating a company with $324 billion in assets, No. 4 among U.S. banks.
The combined firm will be called Wachovia Corp., with headquarters in Charlotte; its chief executive will be First Union's G. Kennedy Thompson and its chairman Wachovia's L.M. Baker.
The transaction is expected to close in the third quarter. The companies expect to have to divest $1.5 billion to $2 billion in deposits to gain regulatory approval.
According to the two companies, its 19 million customers will be served by 90,000 total employees, 2,900 banking branches, 5,100 ATMs and nearly 600 brokerage offices.
The companies expect the merger integration process to be completed in three years. Over the three-year period, the combined staff will be reduced by approximately 7,000 positions. Close to half of this reduction is expected to be achieved through normal attrition, the companies say.
