By Laura K. EvansThe Chase Financial Group has announced a $9.2 billion investment in a new financial company that will compete with one of the biggest names in the industry, Bank of America Merrill Lynch.
The investment, in which the bank has also purchased a controlling stake in a rival, is part of a broader $9 billion buyout by the bank in a bid to create a more efficient and modern financial services company, according to a statement from Chase.
It is the largest takeover in history by a single bank.
The new company, which Chase is calling Financial Domination, is expected to be operational by the end of the year, the bank said.
Chase’s purchase of a controlling interest in the company, called Financial Dominating, is designed to give Chase a more powerful voice in the financial industry, the statement said.
The Financial Dominant is a standalone company that can also be used to develop and deliver a range of financial services, including products for the retail and consumer markets, according the bank.
Chasing also said it is buying a controlling share in an online financial platform called Circle, which will provide customers with financial services in exchange for money.
The Chase acquisition was announced at a financial services conference in Las Vegas.
The bank said it will be headquartered in New York.
Charter CEO Vikram Pandit and other executives said the new company will be a force for financial innovation.
Chad Chase is a leading provider of financial information, services and financial planning.
The new company is focused on developing new and innovative products and services for consumers, business owners and investors, the company said.
Its headquarters in New Jersey will be in a space that will house an office and a technology innovation center, the announcement said.