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PNC - PNC Financial Services Inc News Story

$180.81 0.6  0.3%

Last Trade - 12/04/21

Sector
Financials
Size
Large Cap
Market Cap £55.74bn
Enterprise Value £75.23bn
Revenue £12.33bn
Position in Universe 161st / 6825

UPDATE 1-M&T Bank to buy People's United Financial in $7.6 bln deal

Mon 22nd February, 2021 12:56pm
(Adds details on deal, background)
    Feb 22 (Reuters) - M&T Bank Corp  MTB.N  has agreed to buy
People's United Financial Inc  PBCT.O  in an all-stock deal
valued at about $7.6 billion, expanding its branch network and
creating a regional bank with about $200 billion in assets.
    The combined bank will have a network of more than 1,100
branches and over 2,000 ATMs across 12 U.S. states, M&T Bank
said in a statement on Monday.
    Under the deal, People's United shareholders will receive
0.118 shares of M&T common stock for each People's United share
they own. The offer implies a 13% premium to People's United's
closing price on Friday. 
    "The merger extends our reach by providing customers access
to a larger banking network and an expanded array of services,"
People's United Chief Executive Officer Jack Barnes said.
    A loosening of financial regulations and lowering of
corporate taxes under former U.S. President Donald Trump
prompted regional lenders to pursue scale through deals. 
    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:*:nL4N2I204Z
    Founded in 1842, People's United Bank, a unit of People's
United Financial, offers commercial and retail banking services
through a network of more than 400 retail locations. 
    Buffalo, New York-headquartered M&T said it expects the deal
to boost its earnings per share by 10-12% in 2023 while reducing
annual costs by about $330 million.
    The deal is expected to close in the fourth quarter of 2021.
    Lazard acted as financial advisor to M&T, while Keefe,
Bruyette & Woods served as lead financial advisor to People's
United.

 (Reporting by Noor Zainab Hussain in Bengaluru; Editing by
Krishna Chandra Eluri and Aditya Soni)
 ((noor.hussain@thomsonreuters.com; Within U.S. +1 646 223 8780;
Outside U.S. +91 80 6182 2663 or +91 80 3796 2663 ;))
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