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Banks join in $3B merger
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October 20, 1997: 1:49 p.m. ET
Banc One to acquire First Commerce for stock valued at about $3 billion
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NEW YORK (CNNfn) - First Commerce Corp. said Monday it will merge with Banc One Corp. in a deal valued at approximately $3 billion.
First Commerce shareholders will receive 1.28 shares of Banc One for each of their shares. That deal amounts to $70.64 per share, or a premium of 22 percent over First Commerce's share price.
The New Orleans, La.-based First Commerce has six banks in Louisiana, including the First National Bank of Commerce and City National Bank of Baton Rouge, and had assets of about $9.3 billion at the end of the third quarter of this year.
The acquisition will put the Columbus, Ohio-headquartered Banc One in a strong position in the Louisiana market. The company already operates Bank One, Louisiana, which has assets of $5.5 billion.
"The combination of our Louisiana franchises creates a very strong organization and makes sense in the light of the consolidation taking place in our industry today," said First Commerce CEO Ian Afnof.
Banc One's most recent foray into merging was in January, when it acquired First USA Inc., a credit card company serving 16 million cardholders, in a $7.3 billion stock deal.
Banc One operates more than 1,200 offices in 12 states and has total assets of around $140 billion.
Monday's move is the latest in a trend toward consolidation within the banking industry. The largest such merger ever occurred in August when NationsBank Corp. said it would buy Barnett Banks for $15.5 billion.
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Banc One
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