CHARLOTTE, N.C. (AP) -- Bank of America says it will purchase LaSalle Bank Corporation from ABN Amro North America Holding Comapny for $21 billion.
The deal was announced earlier by ABN Amro when the Dutch bank agreed to sell itself to Barclays for more than $91 billion.
It will have a net cost of $16 billion after a return of $5 billion in excess capital.
The combination of LaSalle and Bank of America creates a leading banking franchise in metropolitan Chicago, the Number Three banking market in the United States, and in Michigan.
Bank of America says it expects to become the leading retail bank in Michigan, with a 23 percent deposit market share. In Chicago, it's expected to have more than 14 percent of the deposit market.