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HU3 - Huntington Bancshares Inc News Story

€7.55 -0.2  -2.0%

Last Trade - 7:05am

Sector
Financials
Size
Large Cap
Market Cap £7.10bn
Enterprise Value £15.20bn
Revenue £3.67bn
Position in Universe 118th / 1041

UPDATE 1-Huntington Bancshares to buy FirstMerit Corp for about $3.4 bln

Tue 26th January, 2016 6:40am
(Adds details of deal; background) 
    Jan 26 (Reuters) - Huntington Bancshares Inc  HBAN.O  said 
on Tuesday it has agreed to buy Ohio-based FirstMerit Corp 
 FMER.O  for about $3.4 billion in a cash-and-stock deal. 
    Huntington expects the deal, which would combine two of 
Ohio's midsize banks, to add to its earnings per share in 2017, 
excluding one-time merger-related expenses.  urn:newsml:reuters.com:*:nMKWrcqd4a 
    The deal, which is expected to be completed in the third 
quarter of 2016, is the latest in a string of mergers among 
smaller U.S. banks, spurred by years of near-zero interest rates 
and higher costs related to stricter regulations imposed since 
the financial crisis. 
    Huntington offered the equivalent of $20.14 per share for 
FirstMerit Corp - 1.72 of its own shares and $5.00 in cash, a 
premium of 31 percent to FirstMerit's closing price on Monday on 
the Nasdaq. 
    FirstMerit's stock closed down 4 percent at $15.37 on 
Monday, while Huntington closed down about 4 percent at $8.80. 
    Under terms of the deal, FirstMerit Corp will merge with a 
unit of Huntington Bancshares, and FirstMerit Bank, a unit of 
FirstMerit Corp, will merge with and into The Huntington 
National Bank, Huntington said. 
    The pro-forma company is expected to have nearly $100 
billion in assets and will operate across an eight-state 
Midwestern footprint, Huntington said in a statement. The 
combination would create the largest bank in Ohio, based on 
deposit market share, it added. 
    Huntington will also expand its operations into new markets 
of Chicago and Wisconsin, it said. 
    Huntington Bancshares Inc, a bank holding company, operates 
through its subsidiary, the Huntington National Bank. The 
Columbus, Ohio-based bank offers banking services, automobile 
financing, equipment leasing and other financial products and 
services. 
    The deal is expected to be about 10 percent accretive to 
Huntington's earnings per share in 2018, the first full year 
after all expected synergies are implemented, the company said. 
    Goldman, Sachs & Co served as financial advisor to 
Huntington while Sandler O'Neill + Partners L.P. advised 
FirstMerit. 
 
 (Reporting by Aurindom Mukherjee in Bengaluru; Editing by 
Gopakumar Warrier and Sunil Nair) 
 ((aurindom.mukherjee@thomsonreuters.com; within U.S.+1 646 223 
8780; outside U.S. +91 80 6749 4755; Reuters Messaging: 
aurindom.mukherjee.thomsonreuters.com@reuters.net)) 
 
Keywords: FIRSTMERIT M&A/HUNTINGTON BANC
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