M&T Bank Corporation (NYSE: MTB) has signed an acquisition deal with People’s United Financial Inc. (NASDAQ: PBCT) in an all-stock deal. The merged firm will make a diversified, community-focused banking franchise with nearly $200 billion in assets and a network of more than 1,100 branches and over 2,000 ATMs that cover 12 states from Maine to Virginia and the District of Columbia.
As per the deal, the stockholders of PBCT will get 0.118 of a share of M&T common stock for each People's United share they hold. After the execution of the deal, the shareholders of PBCT will hold nearly 28% of the merged firm. The total value of the deal is nearly $7.6 billion.
This deal will establish the prominent commercial bank in the Northeast and Mid-Atlantic regions, with the extent and share to play effectively. The firm has struggled to support local communities.
Furthermore, M&T anticipated the deal to be quickly profitable to its tangible book value per share. It is also anticipated that the deal will be 10-12% will increase M&T's earnings per share in 2023, mirroring the projected annual cost synergies of nearly $330 million. Both the firms have the same mission of supporting and providing services to the customers.
By joining their expertise, the firm will be able to strengthen its position in the market. The merger increases the reach of both the firms by offering consumers the opportunity to access a larger banking network as well as an increased array of services.