NEW YORK - BANK of America's acquisition of Merrill Lynch was approved on Friday at a special stockholders meeting of the Wall Street icon battered by the housing and credit crisis.

The acquisition is expected to close by the end of the year, pending the receipt of regulatory approvals and meeting other conditions, Merrill Lynch said in a statement.

'By approving this transaction, Merrill Lynch stockholders expressed confidence that the combination of our firm and Bank of America will create one of the most powerful financial institutions in the world, with unmatched capabilities and service,' said John Thain, chairman and chief executive of Merrill Lynch.

'This combination will create great value for our stockholders and clients around the world,' he said.

Under the terms of the share transaction, Merrill Lynch will become a wholly-owned subsidiary of Bank of America, the statement said.

The US$50 billion (S$76.1 billion) stock acquisition had been announced in September at the same time rival Lehman Brothers collapsed and fears were rising over the survival of Merrill, the brokerage giant with the bull sculpture outside its Wall Street headquarters.

On finalising the deal, Bank of America would bolster its position as the largest US banking and financial firm with assets of US$2.7 trillion dollars.

Bank of America, based in Charlotte, North Carolina, would control deposits of some US$852 billion, or 11.9 per cent of the US total. -- AFP