BRIDGEPORT, Conn. — M&T Bank Corp. and People’s United Financial Inc. announced they have entered into a definitive agreement under which M&T will acquire People’s United in an all-stock transaction.
The combined company will create a diversified banking franchise with approximately $200 billion in assets and a network of more than 1,100 branches and more than 2,000 ATMs spanning 12 states from Maine to Virginia and the District of Columbia. The combined franchise will operate across some of the most populated banking markets in the U.S. As part of the transaction, People’s United’s current headquarters in Bridgeport, Conn. will become the New England regional headquarters for M&T.
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 implied total transaction value based on closing prices on Feb. 19 is approximately $7.6 billion.
“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 CEO 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.”
Jack Barnes, chairman and CEO of People’s United, added that “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 has been unanimously approved by the boards of directors of each company. The merger 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.