Firstar, US Bancorp to Sell Units in Merger Deal

The Justice Department approved the merger of Firstar Corp. with US Bancorp into the nation’s eighth-largest bank after the banks agreed to sell 13 branches with $756 million in deposits in Minnesota and Iowa. With the sale, the Justice Department’s antitrust division will raise no objection to the required final approval of the deal by the Federal Reserve System’s board of governors. Firstar agreed to sell 11 branches in the Minneapolis-St. Paul area and about $180 million in middle-market loans. In addition, it will allow the buyer to hire a number of its commercial loan officers. The company also will sell two branches in Council Bluffs, Iowa. Firstar also has agreed that any branches closed in the two markets as a result of the merger will be sold to a commercial bank if the bank’s offer is equal to or higher than that of non-bank bidders. Shares of Milwaukee-based Firstar closed up 45 cents at $24.01, while Minneapolis-based US Bancorp closed up 50 cents at $30.18, both on the New York Stock Exchange.