| FOR IMMEDIATE RELEASE
TUESDAY, SEPTEMBER 8, 1998
TDD (202) 514-1888
AFTER PARTIES AGREE TO $1.47 BILLION DIVESTITURE IN INDIANA
WASHINGTON, D.C. -- The Department of Justice's Antitrust Division today cleared the $29 billion merger of Banc One Corporation with First Chicago NBD Corporation after the banks agreed to divest 39 branch offices in Indiana with total deposits of approximately $1.47 billion. In addition, the banks have offered to sell certain middle market commercial loan operations in Indiana and associated middle market commercial loans. The Antitrust Division's investigation was conducted jointly with the Indiana Attorney General's Office.
In order to resolve the Antitrust Division's concerns that the merger would lessen competition for banking services, Ohio-based Banc One has agreed to divest First Chicago NBD branches in the following Indiana counties--Monroe, Harrison, Marion, Johnson, Hamilton, Morgan, Tippecanoe, Lawrence, Jasper, and Carroll. Subject to regulatory approval, the 39 branches and associated loans and deposits that Banc One will divest will be sold to one or more competitively suitable buyers.
"This settlement ensures that small and medium-sized business consumers will continue to have the benefits of competition," stated Joel I. Klein, Assistant Attorney General in charge of the Department's Antitrust Division. "As a result, consumers will continue have a choice for their banking needs, and will continue to receive competitive loan rates and other banking services."
The proposed merger of Banc One and First Chicago NBD is subject to the approval of the Board of Governors of the Federal Reserve System. The Department said that it will advise the Federal Reserve Board that, subject to divestiture of the branch offices and associated loans and deposits, the Antitrust Division will not challenge the merger.
Banc One also agreed that it will not take steps to preclude other financial institutions from leasing or purchasing any bank branches that it may close due to consolidation resulting from the merger.
Banc One Corporation, based in Columbus, Ohio, has 1,300 offices located in 12 states--Arizona, Colorado, Illinois, Indiana, Kentucky, Louisiana, Ohio, Oklahoma, Texas, Utah, West Virginia, and Wisconsin. It has total deposits of $77.4 billion and total assets of $147 billion.
First Chicago NBD Corporation, headquartered in Chicago, has 650 offices primarily located in Michigan, Indiana and Illinois. It has total deposits of $68 billion and total assets of $122 billion.
A list of the branches to be sold is attached.