Capital One Reported in Deal of $14.6 Billion for North Fork
The Capital One Financial Corporation agreed yesterday to acquire the North Fork Bancorporation for about $14.6 billion in cash and stock, people involved in the negotiations said.
The acquisition, which is expected to be announced today, would give Capital One a strong retail banking foothold in the Northeast as growth of its nationwide credit card franchise slows.
The transaction would also the end the independence of North Fork, based in Melville, N.Y., which transformed itself over the past decade from a small community bank into a regional player through a series of acquisitions.
Over the past few years, Capital One has hinted about its retail banking ambitions. Other standalone credit card companies, beset by higher borrowing costs as well as a slowdown in credit card growth, have been snapped up by larger competitors. But Capital One has been determined to remain independent and diversify its business.
Last fall, the company acquired the Hibernia National Bank, which operates more than 300 branches in Louisiana and Texas. It has expanded its presence into other areas like auto, home equity and college loans.
With the acquisition of North Fork, the combined company will have deposits of more than $84 billion, a managed loan portfolio of more than $143 billion, more than 50 million customer accounts and 655 branches.
Source: NY Times.
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