M&T and Hudson City banks reveal merger plans
Hudson City and M&T plan to merge.
M&T Bank Corporation and Hudson City Bancorp are to combine their operations.
Merger and acquisition consultants could be required for the transaction, which will see Hudson City join with one of M&T's subsidiaries.
Boards of directors from both firms have given the green light to the deal, although common shareholders and regulators will also have to approve the move.
The overall value of the transaction is around $3.7 billion (£2.34 billion) and should enable M&T to gain deposits worth $25 billion and loans of $28 billion, prior to acquisition accounting adjustments.
Currently, M&T owns assets worth around $80.8 billion, while Hudson City possesses $43.6 billion, but when the merger goes ahead, contract negotiations will see M&T liquidate part of its investment portfolio to repay $13 billion of Hudson City loans.
"This merger creates tremendous opportunities to build on the successes that each company has achieved individually in its own markets," chief executive officer and chairman of Hudson City Ronald Hermance said.
Posted by Ken Hayes
Source: M&T press release, August 27th