The biggest merger in history took place yesterday as American financial giants Citicorp and Travelers Group joined forces in a deal worth £85bn.
The merger creates a financial powerhouse set to dominate global banking in a way never before attempted.
The new group, to be known as Citigroup, will have 100 million customers in 100 countries and compete in every section of the finance industry from mainstream banking to insurance and stockbroking. Travelers acquired stock trading group Salomon Brothers last year and merged it with Smith Barney.
The combined group will have total assets of $700bn (£422m), annual revenues of $50bn and profits of about $7.5bn.
The companies said today that it will be a stock deal with no cash changing hands and the initial reaction in pre-market trading saw Citicorp shares soar $14 to $156 while Travelers jumped $3 to $64.
The merger still faces approval from regulators but analysts said the most difficult hurdle will be the marrying of two corporate cultures.
EGi News 07/04/98
