M&T Bank Corp. (MTB) and People’s United Financial, Inc. (PBCT) announced Monday that they have entered into a definitive agreement under which M&T Bank will acquire People’s United in an all-stock transaction valued at approximately $7.6 billion.
The combined company will create a diversified, community-focused commercial bank in the Northeast and Mid-Atlantic regions with approximately $200 billion in assets and a network of more than 1,100 branches and over 2,000 ATMs that spans 12 states from Maine to Virginia and the District of Columbia.
Under the terms of the agreement, People’s United shareholders will receive 0.118 of a share of M&T common stock for each People’s United share they own. Following completion of the transaction, former People’s United shareholders will collectively own approximately 28% of the combined company.
The merger, unanimously approved by the boards of directors of each company, is expected to close in the fourth quarter of 2021, subject to the satisfaction of customary closing conditions, including receipt of regulatory approvals and approval by the shareholders of each company.
M&T expects the transaction to be immediately accretive to its tangible book value per share and 10 to 12% accretive to M&T’s earnings per share in 2023, reflecting estimated annual cost synergies of approximately $330 million.
Upon closing, Jack Barnes, Kirk Walters and three other current members of the board of directors of People’s United will join M&T’s board of directors.
As part of the transaction, People’s United’s current headquarters in Bridgeport, Connecticut will become the New England regional headquarters for M&T, further strengthening the combined company’s commitment to Connecticut and the region.
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