Bank of America Corp. says it will buy FleetBoston Financial Corp. for US$47 billion in a deal that will create one of world’s largest financial services companies.

The merged company will be the largest consumer bank in the United States with 33 million customers and 2.5 million business customers around the globe.

The announcement sent shares of FleetBoston soaring 24% in morning trading on the NYSE Stock Exchange.

Bank of America will pay US$45 per share for every share of FleetBoston in the all-stock deal.

“This merger is about delivering the combined capabilities of two powerful organizations to our customers, shareholders and communities,” Kenneth Lewis, the chairman and CEO of Bank of America, said in a statement.

Lewis will become the CEO of the new company, while Charles Gifford, the chairman and CEO of FleetBoston, will become its new chairman.

Bank of America has about US$737 billionin assets, while FleetBoston has about US$196 billion.

Written by CBC News Online staff