The American Central Bank (FED) approved the acquisition of Countrywide Financial, the largest real estate loans company in the US, by the Bank of America, Associated Press informs. In January, when the transaction was first announced, Bank of America said it would pay some 4 billion dollars, Countrywide shareholders receiving 0.1822 of a Bank of America share for each share held in Countrywide.
During the past few months, analysts speculated that the transaction could come at a lower price, given the fast deterioration of the real estate loans market and the growth of the number of those unable to pay up their loans.
Still, Bank of America president Ken Lewis considers that the transaction represents a good deal, even in the conditions of a real estate credit crisis.
Bank of America has assets worth 1,700 billion dollars, Forbes informs. Countrywide stock fell 80% in 2007.