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February 22, 2021

Buffalo’s M&T to buy People’s United for $7.6B

Photo | Contributed Jack Barnes is the CEO and Chairman of People’s United Financial.
By Matt Pilon

New York-based M&T Bank says it has agreed to acquire People’s United Bank and its parent People’s United Financial for $7.6 billion.

The all-stock transaction announced Monday will combine two of the largest lenders in the Northeast. The two publicly traded banks have approximately $200 billion in combined assets and more than 1,100 branches spanning from Maine to Washington, D.C.

The companies said the deal would produce $330 million in cost savings by 2023.

People’s United has been a major driver of bank consolidation in its home state in recent years, acquiring Hartford-based United Financial and community lender Farmington Bank.

Under the terms of the M&T deal, which is set to close in the fourth quarter pending regulatory approvals, People's United's longtime Bridgeport headquarters will become M&T’s New England regional headquarters.

People’s United shareholders would receive 0.118 shares of M&T stock for every one of their own shares. That amounts to a value of $17.70 per share for People’s United shares, and is a premium of 13% over People’s United’s Feb. 19 closing price.

The combined company would be led by M&T Chairman and CEO Rene Jones. The deal gives M&T the 8th largest branch footprint in the Northeast, but adding People’s United’s 419 total branches would allow the bank to leapfrog over Wells Fargo, JPMorgan Chase, Citizens and several other large competitors.
M&T said attractive elements of People’s United’s business include its leading market position, risk management abilities, equipment finance division and access to its more than 710,000 retail customers and commercial customers.

"In People's United, we have found a partner with an equally long history of serving and supporting customers, businesses and communities," Jones said in a statement. "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. I am incredibly excited about this opportunity and look forward to welcoming new customers and team members to our M&T family."

People’s United Chairman and CEO Jack Barnes will join the M&T board of directors, but any other future job title wasn’t disclosed.

In a statement, Barnes called M&T “a like-minded partner that shares our culture of supporting communities by focusing on building meaningful relationships and providing personalized products, services and local market expertise to customers, while building on our legacy of excellence in service."

"The merger extends our reach by providing customers access to a larger banking network and an expanded array of services,” Barnes said. “I am confident our shared community banking philosophies will provide significant long-term value for our shareholders, employees and loyal customers."
 

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