Bank of America Corporation, one of the world's largest financial institutions, has finally got permission from the Board of Governors of the Federal Reserve System of the company's purchase of Merrill Lynch & Co., Inc.

Charlotte, N.C.-based Bank of America aims to close the transaction by the end of the year pending shareholders and other regulatory approvals.

Under the arrangement, three directors of Merrill Lynch are expected to join the Bank of America Board of Directors.

Market watchers believes that Merrill Lynch would enhance Bank of America's current strengths by creating a company with the leading position in wealth management as well as in global debt underwriting, global equities and global merger and acquisition advice.

According to an estimate, on completion of deal, Bank of America will have the largest wealth management business in the world with nearly 20,000 financial advisors and approximately $2.5 trillion in client assets.

The scrip of the lender gained 4.26 per cent to $15.43 at the close of Wednesday's trading with over 118.91 million shares changing hands on the NYSE.