Washington Mutual Merger Completed

Washington Mutual Inc. said Wednesday it has completed its merger with Great Western Financial Corp.

The merger, effective Tuesday evening, creates the nation’s largest thrift with $88.5 billion in assets and $52.5 billion in deposits.

Great Western, based in Chatsworth, Calif., sought out Washington Mutual to escape a hostile bid made in February by H.F. Ahmanson & Co.

Under terms of the deal, Great Western shareholders will receive 0.9 shares of Washington Mutual stock for each share of Great Western stock. Based on Tuesday’s closing common stock price of $63.81, the exchange is valued at about $8 billion.

Great Western’s president and chief executive and other executive management will leave the company at the end of July. Three Great Western directors will join the Washington Mutual board.

Seattle-based Washington Mutual said its earnings will be reduced by $318 million due to expenses related to the merger.