New York-based M&T Bank Corp. MTB, +2.20% announced Monday an agreement to buy Connecticut-based People’s United Financial Inc. PBCT, +2.28% in an all-stock deal valued at $7.6 billion. Under terms of the deal, People’s United shareholders will receive 0.118 M&T shares for each People’s United share they own, which based on Friday’s stock closing prices values People’s United shares at $17.70 each, or a 12.9% premium. Shares of People’s United rose 8.4% premarket prior to a trading halt for news, which will be lifted at 7:30 a.m. Eastern, while M&T shares slipped 0.6%. The combined company will have about $200 billion in assets, with branches in ATMs in 12 states, from Maine to Virginia. The deal is expected to close in the fourth quarter of 2021. “Combining our common legacies and our complementary footprints will strengthen our ability to serve our communities and customers, and provide solutions that make a difference in people’s lives,” said M&T Chief Executive Rene Jones. Over the past year, shares of People’s United fell 3.7% and M&T dropped 11.0% through Friday, while the SPDR S&P Regional Banking ETF KRE, +3.20% climbed 14.7% and the S&P 500 SPX, -0.19% gained 9.8%.
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