M&T Bank Corp. agreed to buy People’s United Financial Inc. for $7.6 billion in an all-stock deal, the companies said Monday, the latest in a string of regional-bank tie-ups.
Based in Bridgeport, Conn., People’s United has a market value of roughly $6.6 billion, while Buffalo, N.Y.-based M&T’s is more than $19 billion. Combined, the banks would have more than $200 billion in assets and a network of 1,135 branches concentrated in the Northeast and mid-Atlantic regions. The deal would facilitate M&T’s expansion into the Boston market and strengthen its position in New York and Connecticut.
The Wall Street Journal previously reported Sunday that the two companies were nearing a deal.
“The radius from the center of our franchise to the farthest branch is just under 300 miles, so we can actually be a really relevant financial institution to our customers in those regions,” M&T Chief Executive René Jones said in an interview. “It’s a local scale versus a national scale, and we still believe that’s relevant.”
For M&T, a serial acquirer, it would be its first major takeover since its acquisition of Hudson City Bancorp Inc. in 2015. That deal was delayed for three years after regulators found “significant weaknesses” in M&T’s antimoney-laundering and consumer-compliance programs.