(May 4) – “Halifax Group PLC and Bank of Scotland PLC on Friday officially unveiled their plan for a no-premium merger, creating a financial-services institution valued at 28 billion pounds ($40.21 billion or 45.17 billion euros),” reports today’s Wall Street Journal.

“The value of the transaction, described as a merger of equals, is based on the May 3 closing middle-market share prices of Bank of Scotland, at 811 pence, and Halifax at 793 pence, and would create Britain’s fifth-largest bank. Shareholders of the two companies will receive one share in the enlarged group, to be called HBOS PLC, for each of their Halifax or Bank of Scotland shares.”

“Following the transaction, Halifax shareholders will hold about 63% of HBOS, with Bank of Scotland investors holding about 37%.”

“The banks, which will remain as separate authorized institutions and will continue to trade under their current brand names, said that they expect to eliminate about 2,000 jobs in the next three years.”

“The enlarged group will draw its board of directors equally from the boards of Halifax, Britain’s sixth-largest bank, and Bank of Scotland, known for its corporate-banking expertise.”

“The company will be headquartered in Edinburgh, Scotland, while its retail operations will be based in Halifax, England.”

“Lord Dennis Stevenson of Halifax will take the role of chairman of HBOS, with Bank of Scotland Chairman Peter Burt as full-time executive deputy chairman. Halifax Chief Executive James Crosby will take the same position at HBOS.”