M&T Bank Corporation (NYSE: MTB) and People’s United Financial, Inc. (NASDAQ: PBCT) have reported entry into a definitive agreement where M&T will acquire People’s United in an all-stock transaction. The combined company will be a diverse, community focused banking franchise with USD 200 Billion in assets with a network of over 1,100 branches and over 2,000 ATMs that span 12 states from Maine to Virginia and the District of Columbia. Under the terms of the agreement, People’s Unite shareholders will receive 0.118 of a M&T common stock for each People’s United share owned. Post completion of the transaction, former People’s United shareholders will own 28% of the combined company which implies a total transaction value of USD 7.6 Billion via the closing prices on February 19th, 2021.
“In People’s United, we have found a partner with an equally long history of serving and supporting customers, businesses and communities,” said René Jones, chairman and chief executive officer of M&T, who will lead the combined company in the same capacity. “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.”
“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,” said Jack Barnes, chairman and chief executive officer of People’s United. “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 has been approved unanimously by the boards of directors of each company. It is expected to close in thefourth quarter of 2021 subject to certain customary closing conditions which include the receipt of regulatory approvals and approval by shareholders of each company.