National City agrees to sell branch banking offices to facilitate merger with PNC, satisfy DOJ

By Lisa Kerner

Charlotte, N.C., Dec. 11 - PNC Financial Services Group Inc. and National City Corp. 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 companies' proposed merger.

National City must also divest approximately half of its lending and related business with middle-market customers in the Pittsburgh area and virtually all of that business in the Erie area, a Justice Department statement said.

The divesture resolves competitive concerns about the proposed merger, the government said.

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.

Shareholders of both companies will vote on proposals to complete the merger at separate special meetings on Dec. 23, a prior news release said.

PNC is a Pittsburgh-based diversified financial services company.

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