Chemical Financial TCF merger wrapped up
The previously announced $3.6bn all-stock Chemical Financial TCF merger has been wrapped up following receipt of required regulatory approvals, as per the latest banking acquisition news.
As per the terms of the transaction (Chemical Financial acquisition of TCF), TCF Financial merged into Chemical Financial with the latter being the surviving company. Following the closing of the Chemical Financial TCF merger, the surviving bank holding company has been renamed TCF Financial.
Prior to the merger, Chemical Financial, the Michigan-based bank holding company owned the Chemical Bank, while the Minnesota-based TCF Financial was the parent company of TCF Bank.
The newly created TCF Financial from the merger is the bank holding company of a premier Midwest bank, operating as TCF National Bank, which is headquartered in Detroit. TCF National Bank, which will have a total of more than 500 branches in nine states will have a considerable operating footprint across Minneapolis, Midland, and Chicago.
Overall, TCF National Bank has more than $47 billion in assets and $35 billion in total deposits.
Commenting on Chemical Financial TCF merger, Craig R. Dahl – TCF president and CEO, said: “We are pleased to close our merger ahead of schedule and excited to begin operating as one organization.
“With complementary banking platforms and the additional scale created through the merger, we are uniquely positioned to provide a more robust product set to a broader customer base with limited overlap and disruption.”
As per the Chemical Financial TCF merger terms, the original TCF shareholders exchanged each of their shares with 0.5081 of Chemical Financial shares, valued at $21.58.
The original shareholders of TCF own a stake of 54% while Chemical Financial will own the remaining stake of 46% in the newly created TCF Financial.
Gary Torgow – TCF executive chairman, commenting on Chemical Financial TCF merger, said: “As we bring together the best of both banks, our shared strategic vision and culture will generate value and opportunities for our shareholders, customers, employees and the communities we serve.”
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