U.S. Bancorp of Portland, Ore., gained final regulatory approval for its acquisition of West One Bancorp. of Boise, Idaho.

Both the Federal Reserve Board and the Justice Department on Monday approved the deal, which will create a $28-billion bank with 661 branches in Oregon, Washington, Nevada, California, Idaho, and Utah.

"We anticipate the merger will close during the week between Christmas and New Year's," U.S. Bancorp. spokesman Mary Ruble said.

U.S. Bancorp. agreed to sell 21 branches in Oregon with $480 million in deposits and six branches in Washington with $134 million in deposits.

"This divestiture package will ensure that the prices and service which are offered to consumers will remain competitive," Assistant Attorney General Anne K. Bingaman said.

The Fed rejected several Community Reinvestment Act challenges to the deal, noting that U.S. Bancorp's lead bank holds an "outstanding" CRA rating.

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