M&T Bank buys People’s United Financial in US$7.5b all-stock deal

M&T Bank Corp is buying People’s United Financial Inc. in an all-stock deal valued at about US$7.6 billion.

Branches of the two regional banks are sprinkled throughout the Northeast and mid-Atlantic.

People’s United shareholders will receive 0.118 of a share of M&T common stock for each share they own. People’s United shareholders will collectively own abour 28 percent of the combined business.

The combined company will have about US$200 billion in assets and a network of more than 1,100 branches and more than 2,000 ATMs in 12 states from Maine to Virginia and the District of Columbia.

M&T had been active in acquisitions, but People’s United would be the first major deal in almost six years.

People’s headquarters in Bridgeport, Connecticut will serve as the New England regional headquarters for M&T.

The deal, expected to close in the fourth quarter, still needs a sign-off from shareholders of both companies.-AP