Washington Mutual to acquire Commercial Capital

Washington Mutual has said in a statement that they are acquiring Commercial Capital Bancorp. The deal would be worth around $983 million and it would help the company increase returns from real-estate banking in states like California.

Washington Mutual added that they would be paying $16 a share in cash for Commercial Capital. This price is around a 13% premium over Commercial Capital’s current stock price in the market.

Chief Executive Officer Kerry Killinger said in a statement that this deal would provide them additional opportunities to increase deposits and cross-sell consumer banking products in California. They are the America’s biggest U.S. savings and loan company and are now planning to add higher-return products such as home-equity and subprime loans to borrowers with a higher risk of defaulting.

The deal is expected to close in the third quarter of the current year itself.