Fresh with government funds, The PNC Financial Services Group Inc. completed its acquisition of National City Corp.
An announcement said the deal closed today. Shareholders of Cleveland-based National City will receive 0.0392 shares of PNC common stock.
Branches of National City will operate without interruption until a planned conversion in the second-half 2009. PNC agreed to divest 61 National City branches to win Justice Department approval for the acquisition.
Pittsburgh-based PNC also reported that the U.S. Department of the Treasury completed the purchase of preferred shares and warrants for $7.6 billion through the Troubled Asset Relief Program’s capital purchase program. PNC’s expected purchase price for National City to end up around $5.2 billion.
The acquisition, originally announced on Oct. 24, will make PNC the fifth largest U.S. bank with $180 billion in core deposits. National City reported $3.6 billion third-quarter mortgage production.
