The agreement, which has been unanimously approved by the boards of directors of both companies, provides for a stock-for-stock merger in which 1.32 shares of JPMorgan Chase common stock will be exchanged, on a tax-free basis, for each share of Bank One common stock. Based on JPMorgan Chase's closing price of $39.22 on Wednesday, Janu. 14, the transaction would have a value of approximately $51.77 for each share of Bank One common stock, and would create an enterprise with a combined market capitalization of approximately $130 billion.

The merged company will be known as JPMorgan Chase & Co. and will continue to trade on the New York Stock Exchange, under the symbol JPM. Corporate headquarters will be located in New York with the retail financial services business, which includes the consumer banking, small business banking, and consumer lending activities with the exception of credit card, headquartered in Chicago.

Completion of the transaction is expected to occur in mid-2004.