The U.S. Federal Reserve Board announced Wednesday that it has approved a proposed deal for Canadian Imperial Bank of Commerce (CIBC) to acquire Chicago-based PrivateBancorp Inc. for US$4.9 billion in cash and stock.

The proposed transaction was approved by the U.S. bank's shareholders last month.

The acquisition does not give rise to any concerns, from a regulatory, capital, or a competition, perspective, the Fed says in its order approving the deal.

CIBC and Private Bancorp aim to close the transaction later this month.