People familiar with the matter said that M&T Bank Corp. (M&T Bank Corp.) is about to reach a deal to acquire People’s United Financial Inc. for more than $7 billion.
People familiar with the matter said that assuming the negotiations will not break down, the two companies are discussing an all-stock transaction that may be announced as early as this week. The People’s Unity, headquartered in Bridgeport, Connecticut, has a market value of approximately $6.6 billion, while M&T in Buffalo, New York has a market value of over $19 billion.
The combined assets of these banks will exceed $200 billion, and their branch networks are concentrated in the Northeast and Mid-Atlantic regions. The transaction will promote M&T̵
For the continuous acquirer M&T, this will be the first major acquisition since the acquisition of Hudson City Bancorp Inc. in 2015. The transaction was postponed for three years as the regulator found “significant weaknesses” in M&T’s anti-money laundering and consumer credit. Compliance plan.
M&T is one of the largest regional lending institutions in the Northeast, with total assets of US$142.6 billion by the end of 2020. Commercial real estate loans accounted for almost 40% of its portfolio, some of which included the battered hotel industry in New York City. However, over the past year, the loan performance of the bank and many other regional banks has been better than expected.