Wachovia Corp. said Monday it has completed its $4 billion acquisition of Irvine-based Westcorp Inc. and affiliate WFS Financial Inc.
Last year, Charlotte, N.C.-based Wachovia agreed to buy Westcorp and its offshoot WFS Financial to expand its auto lending operations and jump into the California banking market.
Wachovia, which is the nation’s fourth largest commercial bank, is set to change the Westcorp and WFS Financial brands to its own now that the deal has closed.
The acquisitions mark the loss for Orange County of two locally-based companies with market values of more than $3 billion.
Westcorp said last summer it planned to look for a buyer. For the previous year, the company had been trying to reorganize as a bank holding company to allow more flexibility in how it operates. Part of the plan included buying the remaining 16% of WFS Financial it didn’t own.
But, while Westcorp had gained some approvals for the restructuring, it saw the plan delayed by the Federal Reserve. The company then decided to seek a buyer.
Westcorp and WFS Financial shareholders approved the Wachovia offer in early January. Regulators OK’d the deal in February.
Integration of Western Financial Bank’s 19 branches in Southern California is expected to be completed in the first quarter of 2007, Wachovia said.
Wachovia has assets of $521 billion.
