The parent company of Buffalo-based M&T Bank has agreed to acquire Connecticut-based People’s United Bank in a deal valued at $7.6 billion.
The boards of both companies have approved the merger, which is expected to close in the fourth quarter of 2021, the banks said in a statement this morning.
The all-stock transaction would create a combined company with approximately $200 billion in total assets and around 1,100 branches from Maine to Virginia. People’s United’s current headquarters in Bridgeport will become the New England regional headquarters for M&T, the banks said in the statement. People’s United has branches throughout Massachusetts.
“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,” Jack Barnes, chairman and CEO of People’s United, said in the statement. “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.”
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, the banks said. Former People’s United shareholders will own about 28 percent of the combined company once the transaction is complete. Based on closing prices on Feb. 19, the banks said the transaction is valued at approximately $7.6 billion.
After the merger is complete, Barnes, Senior Executive Vice President Kirk Walters and three other current members of People’s United’s board will join M&T’s board.
