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M&T Bank (MTB), People's United (PBCT) Get Shareholders' Nod
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Shareholders of M&T Bank Corporation (MTB - Free Report) and People’s United Financial Inc. have approved the all-stock acquisition deal between the two companies. The transaction, announced this February, is expected to close in the fourth quarter of 2021 subject to regulatory consents. Post announcement, shares of both companies have rallied 2.6% and 0.75%, respectively.
The chairman and CEO of M&T Bank, René Jones, remarked, "The approval underscores the confidence that both companies' shareholders have in the strategic rationale and the financial benefits of the merger."
The chairman and CEO of People's United, Jack Barnes, noted, "Today's vote demonstrates the high-level of certainty shareholders have in the underlying value of the merger and in the ability of the combined company to better serve our customers, colleagues, and communities.”
Post completion, the combined entity will be the 11th largest bank in the United States, based on assets of about $200 billion. It will have a network of more than 1,100 branches and 2,000 ATMs spread across 12 states from Maine to Virginia and the District of Columbia.
The companies also anticipate to derive some financial benefits from this deal. The M&T Bank expects the deal to be instantly accretive to its tangible book value per share. Also, the merger will result in M&T Bank’s earnings accretion of 10-12% in 2023, suggesting estimated annual cost synergies of $330 million.
Also, People's United's current headquarters in Bridgeport, CT, will become the New England regional headquarters for M&T Bank. René Jones will continue to serve as chairman and CEO of the combined bank. Jack Barnes, Kirk Walters and three other current members of the board of directors of People's United will join M&T Bank's board.
Notably, the merger will create a diversified, community-focused banking franchise in the Northeast and Mid-Atlantic regions. In addition, a complementary top-tier deposit share in core markets is another positive factor.
The merger between M&T Bank and People’s United is likely to translate into greater growth prospects and the creation of shareholder value. Notably, shares of M&T Bank and People’s United have appreciated 32.9% and 47.7%, respectively, over the past six months.
In the current scenario, the banking sector has been witnessing an increase in M&A activities, to dodge the heightened costs of regulatory compliance and increased investments in technology, in a bid to be competitive.
Huntington Bancshares Incorporated (HBAN - Free Report) and TCF Financial Corporation have received both shareholders’ and regulatory approvals for their all-stock acquisition deal. The transaction, announced in December 2020, is expected to close in the ongoing quarter.
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M&T Bank (MTB), People's United (PBCT) Get Shareholders' Nod
Shareholders of M&T Bank Corporation (MTB - Free Report) and People’s United Financial Inc. have approved the all-stock acquisition deal between the two companies. The transaction, announced this February, is expected to close in the fourth quarter of 2021 subject to regulatory consents. Post announcement, shares of both companies have rallied 2.6% and 0.75%, respectively.
The chairman and CEO of M&T Bank, René Jones, remarked, "The approval underscores the confidence that both companies' shareholders have in the strategic rationale and the financial benefits of the merger."
The chairman and CEO of People's United, Jack Barnes, noted, "Today's vote demonstrates the high-level of certainty shareholders have in the underlying value of the merger and in the ability of the combined company to better serve our customers, colleagues, and communities.”
Post completion, the combined entity will be the 11th largest bank in the United States, based on assets of about $200 billion. It will have a network of more than 1,100 branches and 2,000 ATMs spread across 12 states from Maine to Virginia and the District of Columbia.
The companies also anticipate to derive some financial benefits from this deal. The M&T Bank expects the deal to be instantly accretive to its tangible book value per share. Also, the merger will result in M&T Bank’s earnings accretion of 10-12% in 2023, suggesting estimated annual cost synergies of $330 million.
Also, People's United's current headquarters in Bridgeport, CT, will become the New England regional headquarters for M&T Bank. René Jones will continue to serve as chairman and CEO of the combined bank. Jack Barnes, Kirk Walters and three other current members of the board of directors of People's United will join M&T Bank's board.
Notably, the merger will create a diversified, community-focused banking franchise in the Northeast and Mid-Atlantic regions. In addition, a complementary top-tier deposit share in core markets is another positive factor.
The merger between M&T Bank and People’s United is likely to translate into greater growth prospects and the creation of shareholder value. Notably, shares of M&T Bank and People’s United have appreciated 32.9% and 47.7%, respectively, over the past six months.
Currently, both M&T Bank and People’s United carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the current scenario, the banking sector has been witnessing an increase in M&A activities, to dodge the heightened costs of regulatory compliance and increased investments in technology, in a bid to be competitive.
Huntington Bancshares Incorporated (HBAN - Free Report) and TCF Financial Corporation have received both shareholders’ and regulatory approvals for their all-stock acquisition deal. The transaction, announced in December 2020, is expected to close in the ongoing quarter.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
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