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Bank of America Corporation announced it has agreed to acquire Merrill Lynch in a $50 billion all-stock transaction.
Bank of America expects to achieve $7 billion in pre-tax expense savings, fully realized by 2012. The acquisition is expected to be accretive to earnings by 2010.
The transaction is expected to close in the first quarter of 2009. It has been approved by directors of both companies and is subject to shareholder votes at both companies and standard regulatory approvals.
Under the agreement, three directors of Merrill Lynch will join the Bank of America Board of Directors.