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Key Mergers of JPMorgan Chase

  • B. Rajesh Kumar
Chapter
Part of the Management for Professionals book series (MANAGPROF)

Abstract

In the year 2000, the Chase Manhattan Corp. which is the third largest banking company in the United States acquired JPMorgan and Company in an all-stock deal valued at around $30.9 billion. The acquisition of JPMorgan catapulted Chase into the big leagues of investment banking. Chase exchanged 3.7 shares of its stock for each of Morgan’s share. On the basis of Chase’s closing stock price of $52.50 on September 13, 2000, the proposed price was about $30.9 billion. On January 14, 2004, JPMorgan Chase & Co entered into agreement to buy Bank One for $58 billion. The merger created one of the largest and most globally diversified financial services companies in the world. JPMorgan was able to get a strong retail and credit card presence through the merger with Bank One. The deal involved exchange of 1.32 shares of JPMorgan shares for each Bank One share. The cumulative return for JPMorgan Chase for 249 days surrounding the Bank One merger window period −5 to +244 days was approximately 7.8%.

References

  1. ABC News (2000) Chase to buy JP Morgan. http://abcnews.go.com/Business/story?id=89367&page=1. Accessed 20 Dec 2017
  2. J P Morgan Chase &Co. and Bank One Corporation to Merge. https://www.businesswire.com/news/home/20040114005787/en/J.-P.-Morgan-Chase-Bank-Corporation-Merge. Accessed 2 Dec 2017
  3. JPMorgan Chase. The history of JP Morgan Chase& Co. https://www.jpmorganchase.com/corporate/About-JPMC/document/shorthistory.pdf. Accessed 21 Dec 2017
  4. McGeehan P, Sorkin AR (2000) Chase Manhattan to Acquire JP Morgan for $30.9 billion. https://archive.nytimes.com/www.nytimes.com/learning/teachers/featured_articles/20000914thursday.html. Accessed 5 Nov 2017
  5. Press Release (2004) JP Morgan & Chase&Co. https://investor.shareholder.com/jpmorganchase/releasedetail.cfm?releaseid=144508. Accessed 2 Dec 2017
  6. Staff & Wire Report CNNMoney (2004) $58B bank deal set. http://money.cnn.com/2004/01/14/news/deals/jpmorgan_bankone/. Accessed 2 Dec 2017

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • B. Rajesh Kumar
    • 1
  1. 1.Institute of Management TechnologyDubaiUnited Arab Emirates

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