M&T Bank Corp (MTB) is about to strike a deal with People’s United Financial (PBCT) to buy its subsidiary People’s United Bank for over $7b. The Wall Street Journal reported that the all-stock acquisition (expected to be completed in the last quarter of 2021) means the new financial entity could have more than $200b in assets.
Both banks are east coast homies: New York-based M&T Bank is one of the biggest lenders in the northeast, whilst Connecticut-based People’s United Financial has a network of hundreds of branches.
This is M&T’s biggest takeover in six years (they bought Hudson City Bancorp back in 2015). The news sent M&T’s shares up by around 3.2%, and People’s United Financial’s by nearly 15%.