Deal Will Make Merrill Lynch Largest Brokerage In World

NEW YORK - Merrill Lynch & Co. Inc. will buy Smith New Court PLC, a large British securities firm, for about $842 million in cash, creating the world's largest stock broker, the companies announced today.

Merrill already is the largest securities firm in the United States.

The companies said the combined firm would have the largest stock-research team in the world, with about 370 analysts. It would also be the leading underwriter of new stock issues and the largest trader of U.S. and British stocks and U.S. stocks of foreign companies based in Europe, Asia and Latin America.