Merger Watch: Capital One Acquires North Fork Bank
Status:
APPROVED.
Background:
In March 2006, Capital One Financial Corporation announced its intention to acquire North Fork Bancorporation for $14.6 billion in stock and cash. Capital One, headquartered in McLean, Virginia is one of the largest bank holding companies in the country. Collectively with its subsidiaries, Capital One holds deposits of $47.2 billion and more than $108 billion in outstanding managed loans as of June 30, 2006. In November 2005, Capital One acquired New Orleans-based Hibernia Bank, one of the largest banks serving the Louisiana and the Gulf Coast region.
North Fork Bancorporation, headquartered in Melville, New York, has approximately $59.4 billion in assets and serves New York, New Jersey, and Connecticut. Since its founding in 1959, North Fork has acquired 11 banks in the Tri-State area. Together, Capital One and North Fork would constitute the sixth largest depository institution in the New York region, and place Capital One among the top-ten banks in the United States.
***The following banks fall under the auspices of the two corporations:
Capital One, Federal Savings Bank; Capital One Bank; Capital One, National Association;
Capital One Home Loans, LLC; Capital One Auto Finance, Inc.; Hibernia National Bank;
North Fork Bank; and Superior Savings of New England, N.A.***
Details of the transaction can be found in the Form S-4 submitted by Capital One to the Securities and Exchange Commission, which ultimately approved the acquisition. Supporting documents can be found here. The public comment period ended June 6, 2006. New Jersey Citizen Action voiced its opposition to the acquisition in a June 16, 2006 letter to the Federal Reserve Board of Richmond.
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