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Banking industry

Florida CEOs Unhappy with NationsBank's Acquisition of Barnett Banks

Strategic Insights

— 1 min read

A recent survey conducted by The Executive Committee of Florida found that 83% of business leaders in the state are concerned about the acquisition of Barnett Banks Inc. by NationsBank. The poll of 300 CEOs found that half the respondents believe the merger will reduce competition and lead to a decrease in services, while a third are opposed to out-of-state ownership. The survey also revealed that six out of 10 CEOs would consider switching to a Florida-based bank if they decide to change banks. The acquisition is expected to close in the next week or so, and some CEOs may be exploring alternative banking options.

Key Takeaways:

  • 83% of Florida business leaders believe the acquisition of Barnett Banks Inc. by NationsBank is bad for Florida business.
  • Half of the respondents (50%) think the merger will reduce competition and lead to a decrease in services.
  • A third of the respondents (33%) are opposed to out-of-state ownership.
  • Six out of 10 CEOs (60%) would consider switching to a Florida-based bank if they decide to change banks.
  • 50% of the companies rely on banks as their primary source of growth capital.
  • Some CEOs, like Dave Crannell, president of Safety Equipment Co., may be shopping for a new bank due to concerns about the merger.
  • Barnett's commercial lending officer is leaving due to the merger, and Crannell is worried about finding a replacement who understands his company's needs.
  • NationsBank's acquisition of Barnett is expected to close in the next week or so.

Statistics:

  • 83% of Florida business leaders believe the acquisition of Barnett Banks Inc. by NationsBank is bad for Florida business.
  • 50% of the respondents think the merger will reduce competition and lead to a decrease in services.
  • 60% of CEOs would consider switching to a Florida-based bank if they decide to change banks.
  • $14.6 billion: The price of NationsBank's acquisition of Barnett Banks Inc.
  • $35 million: The average annual revenue of the companies led by The Executive Committee members.
  • 300: The number of CEOs polled in the survey.

Sources:

  • "Florida business leaders wary of NationsBank's Barnett buyout" (Tampa Tribune)
  • "Acquisition of Barnett Banks by NationsBank may have unintended consequences for Florida businesses" (The Executive Committee of Florida)

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