'Fallout from Brexit' prompts Bank of America Merrill Lynch application to merge UK and Irish firms

The group seeks to merge Bank of America Merrill Lynch International DAC, with registered offices in Leopardstown in Dublin with Bank of America Merrill Lynch International Ltd, (BAMLI) with registered offices at King Edward Street in London.

Both firms, which provide various banking services, are wholly owned subsidiaries of the US-based investment banking group.

Paul Sreenan SC for the Irish entity told Mr Justice Robert Haughton the application was being made as a result of the "fallout from Brexit."

The Bank of America group said the merger is one of the steps it intends to take to ensure it is able to continue to operate is business and service its clients on an uninterrupted basis following the UK's intended withdrawal from the European Union.

It says BAMLI is the primary lending banking entity for Bank of America in Europe, the Middle East and Africa.

In particular, it carries out its regulated European Economic Area (EEA) banking business in reliance on the freedom of establishment and freedom of services passports as an EEA regulated firm.

The feasibility of this model, it says it is likely to be affected by Brexit and the merger is intended to ensure that the Irish based BAMLI DAC will be able to carry out BAMLI's existing EEA banking business.

It added the full consequences of Brexit and how it will impact on the legal and regulatory regimes in both the EEA and the UK and on its business are not yet known.

The UK firm has total assets of US$43.3BN and liabilities of US $ 34.8Bn. The Irish firm has assets of US$5Bn and liabilities of US$2.8Bn.

It is hoped the merger, which is of great commercial importance to the group and in the best interests of the companies, will be completed by December 1st next.

The application was admitted to the fast track commercial court list by Mr Justice Haughton.

The Judge adjourned the matter to a date in November.