The Federal Reserve Board gave Chemical Banking Corp. permission late Friday to acquire Chase Manhattan Corp., clearing the way for the creation of the nation's largest bank.

The $9.87 billion deal, unveiled Aug. 7, will create a $300 billion- asset institution employing 75,000 people. It will rank first in global loan syndications, Chips, Fed Wire, trading revenues, and automated clearing house funds transfer volume.

Chemical chairman Walter V. Shipley said at a Nov. 16 public hearing that the merger will allow the banks to compete effectively.

The Justice Department has approved deal Dec. 13, but the merger still must be approved by the New York State Banking Department.

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