Chemical Merger Said to Clear Hurdle

The Justice Department told the Federal Reserve Board that it will not challenge the merger of Chemical Banking Corp. and Manufacturers Hanover Corp., executives of those companies said Tuesday.

Meanwhile, the Fed met Tuesday to discuss the merger. Peter Tobin, Hanover's chief financial officer, told analysts that the banks "expect results of the meeting to be positive."

Mr. Tobin and Joseph Sponholz, the Chemical executive who is coordinating the merger, said the banks are confident that the merger will result in $650 million of savings within three years. They also said the banks are making "the tough decisions necessary," including 6,200 layoffs within two years.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.