Regions Financial Corp. is selling Morgan Keegan & Company Inc. and related affiliates to Raymond James Financial Inc. for $930 million. As part of the transaction, Morgan Keegan also will pay Regions a dividend of $250 million before closing, pending regulatory approval, resulting in total proceeds of $1.18 billion. The deal is expected to close during the first quarter.

"This agreement validates our belief in the value of the Morgan Keegan franchise as a leading brokerage and investment banking firm based in the Southeast," said Regions President and CEO Grayson Hall. "I am very pleased that we were able to reach an agreement that benefits our shareholders and helps us focus on our core banking business while also allowing us to continue providing a full range of products and services seamlessly to our customers."

John Carson, CEO of Morgan Keegan, said, "Our businesses have grown significantly over the past decade as part of the Regions family. As we enter a new era for the firm, we are excited by the opportunity to continue providing outstanding service to our individual and institutional clients as part of Raymond James."

Continue Reading for Free

Register and gain access to:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.