Mergers and Acquisitions by Bank of America

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


In the year 1998, the Bank of America was formed by the merger between the NationsBank and Bank of America. This union created a bank with assets of $ 570 billion and extensive network of 4800 branches. During the period 2004–2007, the Bank of America bought FleetBoston Financial for $47 billion, credit card giant MBNA for $35 billion, US Trust for $3.3 billion, and LaSalle Bank for $21 billion. In 2008, Bank of America acquired Countrywide Financial for $4.1 billion and Merrill Lynch for $50 billion which was an all-stock deal. The deal with FleetBoston consolidated Bank of America’s position as US’s second largest bank ranked by assets behind Citigroup. The deal valued FleetBoston at about $45.46 a share. Fleet shareholders received 0.5553 share of Bank of America for each of their shares. On June 30, 2005, Bank of America announced the definite agreement to acquire MBNA Corporation. The acquisition combined US’s largest domestic bank with a leading provider of credit card and payment products. The acquisition enhanced Bank of America’s product mix and customer reach. Bank of America became one of the largest credit card issuers in the United States with $143 billion in managed outstanding balances and 40 million active accounts. The deal was valued at $35 billion in total. Lloyds Banking Group bought the MBNA credit card business from Bank of America for 1.9 billion pounds ($2.4 billion). The acquisition was aimed at reducing Lloyds’ reliance on mortgage lending. During November 2006, Bank of America acquired Charles Schwab’s private banking division for $3.3 billion in cash. This deal heralded Bank of America’s entry into the private banking industry sector. On April 23, 2007, the Bank of America entered into a definitive agreement with ABN AMRO, the parent company of LaSalle Bank and its subsidiaries to acquire LaSalle Bank. During 2008, Bank of America bought Countrywide Financial for $4.1 billion in an all-stock deal. The acquisition created the US leading mortgage originator and servicer.


  1. Associated Press (2006) Schwab agrees to sell U.S. Trust to Bank of America. Accessed 05 April 2018
  2. Bank of America, Financial Releases (2004) Bank of America completes FleetBoston merger. Accessed 04 April 2018
  3. Bank of America Investor Relations (2007) Bank of America agrees to acquire LaSalle Bank. Accessed 10 April 2018
  4. Bank of America Investor Relations, Financial Releases 2003. Bank of America to acquire MBNA. Accessed 04 April 2018
  5. Bank of America Investor Relations, Financial Releases 2006. Bank of America to acquire US Trust. Accessed 04 April 2018
  6. Bank of America Investor Relations, Financial Releases. 2007. Bank of America completes countywide financial Accessed 10 April 2018
  7. Department of Justice, Press Release (1999) Justice Department requires Fleet Financial and Bank Boston to divest 306 branches in four new England States. Accessed 04 April 2018Google Scholar
  8. (2016) Bank of America merger. Accessed 04 April 2018
  9. Ellis D (2008) Countrywide rescue: $4 billion. Accessed 10 April 2018
  10. Frankel M (2015) The biggest mergers and acquisitions in banking. Accessed 04 April 2018
  11. Gasparino C (2008) Bank of America to buy Merrill Lynch for $50 billion. Accessed 10 April 2018
  12. Inman P (2008.) WallStreet Crisis: Bank of America buys Merrill Lynch. Accessed 10 April 2018
  13. Jessop S, White L (2016) Lloyd Bank’s on credit card growth with $2.4 billion MBNA buy. White Accessed 04 April 2018
  14. Lipton J (2006) Bank of America to buy US Trust. Accessed 04 April 2018
  15. Merced M (2006) Bank of America to acquire US Trust. Accessed 04 April 2018
  16. National Public Radio (2008) Bank of America to buy Countrywide. Accessed 10 April 2018
  17. PR Newswire Press Release (1999) Sovereign Bank New England announces acquisition of Fleet/BankBoston branches, Philadelphia and Boston. Newswire. Accessed 04 April 2018Google Scholar
  18. Reuters (2003) BofA nabs Fleet for $47 billion. Accessed 04 April 2018
  19. Vries L (2003) Bank of America buys FleetBoston. Accessed 04 April 2018
  20. Wyant C (2007) Bank of America completes acquisition of US Trust. Accessed 05 April 2018
  21. Yerak B (2010) Bank of America Chief says LaSalle Bank acquisition was worth the money. Accessed 10 April 2018

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

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

Personalised recommendations