NEW YORK (AP) — Leucadia National is buying investment banking firm the Jefferies Group for about $2.6 billion in stock.
As part of the deal, Jefferies Chairman and CEO Richard Handler will become the CEO of Leucadia. Leucadia's Chairman and CEO Ian Cumming will retire but remain on the board.
Jefferies' stockholders will receive 0.81 of a share of Leucadia stock for each share they hold. This doesn't include Leucadia, which owns about 28.6 percent of Jefferies outstanding stock.
Leucadia announced in April that it planned to buy $125 million in Jefferies stock as part of Jefferies' $500 million stock offering.
After the deal closes, 35.3 percent of Leucadia's stock will be owned by Jefferies Group Inc. stockholders.
Both companies' boards have approved the deal. It still needs the approval of both companies' shareholders.