Chase: $2.8B buyout for Progressive Finance

The deal would pay Progressive Finance more than $1 billion, a person familiar with the matter said, with the majority of the payment coming from the U.S. equity market.

Chase will pay about $800 million in cash and a $150 million note, the person said.

Progressive will get an ownership stake in Chase, which would give it greater leverage in negotiations, the source said.

The company is currently run by a group of executives, including Chase’s president, Dan Sallinger.

Progressive Finance said in a statement on Tuesday it was “delighted” with the deal.

“Chase has a deep investment in Progressive, and we look forward to a long and fruitful partnership with Chase Bank and the Progressive community,” the statement said.

In March, Progressive was valued at $7 billion, according to Sallerson, a former Chase executive who has since taken a role as CEO at Citigroup.

Progressive is one of the largest equity-market players in the U, and is one the largest investors in U.K.-based insurer Aon.

Progressive also is one a growing number of banks and credit unions that have been forced to raise rates to keep up with the demand for home loans.

The deal will give Chase an additional financial foothold, analysts said, adding that it may also help Chase expand its footprint in the mortgage market.

For years, Chase has been struggling to compete with U.I.S., a leading broker-dealer with about 20 million customers.

The bank has been under pressure from regulators in both the US. and Europe, as the market for loans to people with low incomes and mortgages with high interest rates has grown, raising concerns about the quality of the products it provides.

In February, Chase and U.IC said the firm would focus on expanding its home-loan portfolio, with a goal of expanding to 50% of its customers.

In a statement, Chase said it was also exploring possible acquisition offers from other companies, including from U.C.L.A., but declined to name any potential suitors.

“We’re focused on providing our customers with a more comprehensive and sustainable home-securitization solution and are committed to supporting the home-lending ecosystem and ensuring the highest standards of service, compliance, and consumer protections for our customers,” Chase said.

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