First Big Bank Merger Announced

Well, we were saying that 2007 is to be the 'year of the big bank merger'. But the first one has been announced before the year has even begun.

Bloomberg reports that Bank of New York (BONY) is to acquire Mellon Financial in a $16.5bn deal.

BONY will own about 60% of the new firm, which will be called The Bank of New York Mellon Corporation. It will have $16.6 trillion in assets under custody and $8 trillion in assets under trusteeship. The firm will also rank among the top 10 global asset management firms, with more than $1.1 trillion under management.

Robert Kelly, chairman and CEO of Mellon, will become the CEO of the new company. He said that 'the organic growth of our respective companies is already strong, and the cost savings and revenue synergies opportunities are excellent'. Thoma Renyi, chairman and CEO of the Bank of New York, will be executive chairman of 18 months.

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