Glenmont has signed a $15bn merger with JPMorgan Chase and its subsidiary Goldman Sachs.
The deal will see the US-based firm buy the UK financial services group for $14.3bn, while JPMorgan will take over its UK operations.
In a joint statement, the two companies said the deal “significantly enhances our ability to serve our clients”.
The merger will make Glenmont the world’s second-largest bank by assets, after the US bank, and will also mean Glenmont will be able to offer better capital returns to clients than its US competitors.
The UK-based group has been struggling to keep up with its rivals in the UK, and its latest accounts show the group is on course for a further £4.9bn loss this financial year.
Its share price has fallen more than 30% in the last year, which is a big concern for its board, which said in a statement: “Glenmont has consistently underperformed in our business, and it is imperative that we have more capital to continue to grow.”
In addition to its US operations, Glenmont also operates in Ireland, Belgium, Germany, and Luxembourg.