M&T Bank to acquire People’s United Financial in $7.6bn all-stock deal
M&T Bank Corporation has signed an all-stock deal worth around $7.6 billion to acquire rival US bank holding company People’s United Financial.
Headquartered in Bridgeport, Connecticut, People’s United Financial is the holding company of People’s United Bank.
Established in 1842, People’s United Bank provides commercial and retail banking via more than 400 retail locations across Connecticut, New York, Vermont, Massachusetts, Maine, and New Hampshire.
People’s United Bank also provides wealth management solutions.
As of 31 December 2020, People’s United had total assets of over $63 billion, $44 billion in loans, and $52 billion in deposits.
On the other hand, M&T Bank Corporation is the holding company of M&T Bank, which is headquartered in Buffalo, New York.
M&T Bank has banking offices across New York, New Jersey, Maryland, Delaware, West Virginia, Pennsylvania, Connecticut, Virginia, and the District of Columbia.
The merger of M&T Bank and People’s United Bank will create a banking franchise with nearly $200 billion in assets and a network of over 1,100 branches and more than 2,000 ATMs spread over 12 states from Maine to Virginia and the District of Columbia.
René Jones – chairman and CEO of M&T Bank will lead the combined company in the same role.
René Jones said: “In People’s United, we have found a partner with an equally long history of serving and supporting customers, businesses and communities.
“Combining our common legacies and our complementary footprints will strengthen our ability to serve our communities and customers, and provide solutions that make a difference in people’s lives. I am incredibly excited about this opportunity and look forward to welcoming new customers and team members to our M&T family.”
As part of the deal, the current headquarters of People’s United Financial in Bridgeport, Connecticut will become the regional headquarters for M&T Bank in New England.
Under the terms of the deal, People’s United Financial shareholders will exchange each of their shares for 0.118 of M&T Bank’s shares.
Post-merger, People’s United Financial shareholders will own nearly 28% of stake in the combined bank holding company.
Jack Barnes – chairman and CEO of People’s United Financial said: “M&T is a like-minded partner that shares our culture of supporting communities by focusing on building meaningful relationships and providing personalized products, services and local market expertise to customers, while building on our legacy of excellence in service.
“The merger extends our reach by providing customers access to a larger banking network and an expanded array of services. I am confident our shared community banking philosophies will provide significant long-term value for our shareholders, employees and loyal customers.”
The merger, which is subject to regulatory approvals and approval by the shareholders of both the companies, and meeting of customary closing conditions, is expected to be wrapped up in Q4 2021.