Old National, First Midwest to merge in $6.5 bln deal (updated)
01/06/2021 14:00
(Adds transaction details, background)
June 1 (Reuters) - Old National Bancorp ONB.O and First
Midwest Bancorp Inc FMBI.O have agreed to merge in an
all-stock deal valued at about $6.5 billion, creating a lender
with $45 billion in assets.
First Midwest investors will receive 1.1336 shares of Old
National common stock for each unit held under the deal, the
companies said in a joint statement on Tuesday.
First Midwest shareholders are expected to own 44% of the
combined company following the close of the deal, which is
likely to happen in late 2021 or early 2022.
The merger follows a clutch of deals in the sector after a
loosening of financial regulations and lowering of corporate
taxes under former U.S. President Donald Trump.
M&T Bank Corp MTB.N in February agreed to buy People's
United Financial Inc PBCT.O in an all-stock deal valued at
about $7.6 billion, while Spain's BBVA BBVA.MC agreed to sell
its U.S. business to PNC Financial Services Group Inc PNC.N
for $11.6 billion in cash in one of the biggest global bank
deals last year. urn:newsml:reuters.com:*:nL4N2KS34N
Keefe, Bruyette & Woods, a Stifel company, served as the
exclusive financial advisor to Old National, while J.P. Morgan
Securities LLC advised First Midwest.
(Reporting by Noor Zainab Hussain and Sohini Podder in
Bengaluru; Editing by Aditya Soni)
((sohini.podder@thomsonreuters.com;))