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Wachovia snaps branches
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October 30, 1997: 1:34 p.m. ET
Bank sells 16 Virginia offices to win regulatory approval for acquisitions
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NEW YORK (CNNfn) - Wachovia Corp. Thursday announced the sale of 16 branches necessary to receive regulatory approval of its $2.3 billion worth of acquisitions of Central Fidelity Banks Inc. and Jefferson National Bank.
One Valley Bancorp Inc. agreed to buy the 16 Jefferson and Central Fidelity branches, all of which are in Virginia, for an undisclosed sum.
Wachovia revealed its intentions to separately acquire the two Virginia banks in June as part of a plan to keep pace with the current trend toward consolidation in that industry.
The Office of the Comptroller of the Currency, the nation's chief bank regulatory agency, required the sale of the branches to receive OCC approval.
The OCC pushed for the sale of the branches to avoid unfair market concentrations in loans and deposits in the Virginia market that would result from the pending merger.
Wachovia (WB), headquartered in Winston-Salem, N.C., is the second-largest bank in Virginia, thus triggering competition concerns among regulators. Overall, the company, with $47.5 billion in assets, has 467 outlets in the Southeastern United States.
The Central Fidelity and Jefferson mergers are expected to be completed by March 20, 1998.
In August, Wachovia snapped up 1st United Bancorp for $222 million.
One Valley (OV) is a Charleston, W. Va.-based bank holding company with $4.5 billion in assets. It's bank system has 89 branches in West Virginia and Virginia.
It said that it will offer positions to all Central Fidelity and Jefferson employees affected by the sale.
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