Bank of America gets EU's OK to buy Merrill Lynch

BRUSSELS, Belgium - European Union antitrust regulators on Friday cleared Bank of America Corp. to buy Merrill Lynch & Co., saying they saw no problems with the $50 billion takeover that will create the largest U.S. financial services company.

The deal, announced Sept. 15, is part of the rapid restructuring of the U.S. financial system amid the global credit crisis. Merrill agreed to be bought by Charlotte, North Carolina-based Bank of America Corp. just days after rival investment bank Lehman Brothers filed for bankruptcy protection.

Shareholders of both Bank of America and Merrill Lynch voted in favor of the deal Friday.

The purchase combines the largest U.S. bank by deposits with the world's largest brokerage, linking Bank of America's huge customer base with Merrill's investment banking services.

The European Commission fast-tracked the takeover, clearing it within a 30-day deadline because it saw no major antitrust issues and received no complaints from rivals or customers.

Under EU law, regulators look at all takeover deals where both companies have an annual turnover of at least euro5 billion ($6.3 billion) worldwide combined and more than euro250 million ($315 million) each in the 27-nation bloc.

U.S. antitrust regulators at the Justice Department approved the deal in October but it still needs the backing of the Federal Reserve.

Bank of America said it expects to close the deal by the end of the year. The all-stock transaction was originally valued at $50 billion, with Bank of America exchanging 0.8595 shares of its stock for each Merrill Lynch common share.

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