The Associated Press March 4, 2011, 5:50AM ET

http://www.businessweek.com/ap/financialnews/D9LOC7UG0.htm

The governor of Lebanon's Central Bank says a local bank accused by the U.S. of money laundering for smugglers tied to the militant Hezbollah group is merging.

Riad Salameh says the Lebanese Canadian Bank SAL will merge with Societe Generale, which is affiliated with the French Societe Generale.

The bank had been put up for sale after the U.S. Treasury Department designated it last month as a "primary money laundering concern," claiming it helped launder up to $200 million a month for a Lebanese-based drug smuggling organization with ties to Hezbollah.

Salameh spoke in an interview with the local LBC TV on Thursday night. He did not disclose the value of the deal.

Media reports have said the bank would likely be sold for $500 to $600 million.