PNC, National City merger approved by Fed, could close by year end

By Lisa Kerner

Charlotte, N.C., Dec. 15 - The Federal Reserve Board approved PNC Financial Services Group, Inc.'s proposed acquisition of National City Corp., it was announced on Monday.

PNC, a Pittsburgh-based diversified financial services company, said it expects to complete the merger by the end of 2008 pending approval by both companies' shareholders on Dec. 23.

As previously reported, PNC and National City agreed to sell 61 of National City's branch banking offices in western Pennsylvania as part of an agreement with the Department of Justice's Antitrust Division in connection with the merger.

PNC agreed to acquire National City, a Cleveland-based financial holding company, in a stock-for-stock transaction to create the fifth-largest U.S. bank by deposits.

National City shareholders will receive 0.0392 shares of PNC common stock for each share of National City held, it was previously reported.

The deal is valued at approximately $5.2 billion in PNC stock.

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