| HBS Case Collection
(Revised from original 1997 version)
Chase Manhattan Corporation: The Making of America's Largest Bank
Chase Bank and Chemical Bank intend to merge, producing the largest commercial bank in the United States, the fourth largest in the world. Projected financial benefits under the merger reflect significant planned reduction in operating costs, including 17,000 employee layoffs. Management also expects the merger to produce significant revenue increases as a result of increased economies of scale and scope, and other benefits of size and market leadership. The task of valuing the merger gains, negotiating an acceptable merger price, and implementing the post-merger restructuring is extremely complex.
Keywords: Commercial Banking;
Mergers and Acquisitions;
Risk and Uncertainty;
Resignation and Termination;