The Federal Reserve Board on Wednesday gave Norwest Corp. permission to acquire Star Bancshares and its Austin, Tex.-based First State Bank subsidiary.

Star controls nearly $500 million of deposits in Texas.

The deal is unusual because Norwest would control 41.6% of the market in Kerr County, a level that usually raises antitrust alarms. The Fed said, however, that there are five other active competitors in the county and the market is ripe for new entrants. The Department of Justice did not object to the deal.

-Jaret Seiberg

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