Banc One-First Chicago Merger Clears Hurdle

The Justice Department said it cleared the $29-billion merger of Banc One Corp. with First Chicago NBD Corp. after the banks agreed to divest 39 branch offices in Indiana with total deposits of nearly $1.5 billion. The banks also offered to sell some middle-market commercial loan operations in Indiana, the Justice Department’s antitrust division said. Union Planters Corp. agreed to acquire the assets in a deal expected to be completed in the first quarter of 1999. Columbus, Ohio-based Banc One further agreed that it would not try to prevent other financial institutions from leasing or purchasing any bank branches that it might close because of consolidation from the merger. The merger, which would form the nation’s fifth-largest bank, still must be approved by the Federal Reserve Board. On the New York Stock Exchange, Banc One shares rose $3.38 to close at $43.25, and Chicago-based First Chicago shares jumped $4.31 to close at $69.63.