Acquisition deal creates nearly $100B bank
A bank with a number of locations in West Michigan is acquiring a bank with a presence in the state for roughly $3.4 billion.
Columbus, Ohio-based Huntington Bancshares Incorporated and Akron, Ohio-based FirstMerit Corporation announced today the signing of a definitive agreement for Huntington to acquire FirstMerit.
Under the terms of the agreement, FirstMerit will merge with a subsidiary of Huntington Bancshares, while FirstMerit Bank will merge into The Huntington National Bank.
FirstMerit shareholders will receive 1.72 shares of Huntington common stock and $5 for each FirstMerit share.
As a single entity, the two financial institutions will create a bank with nearly $100 billion in assets and a network of locations operating in eight states throughout the Midwest.
The acquisition will allow Huntington to expand its operations into the Chicago and Wisconsin markets.
The Huntington board will also welcome four members of the FirstMerit board upon the closing of the acquisition.
The transaction is contingent on shareholder and regulatory approval and is anticipated to be completed in the third quarter of this year.
Huntington was counseled by financial advisor Goldman, Sachs and legal advisor Wachtell, Lipton, Rosen, & Katz. FirstMerit was counseled by financial advisor Sandler O’Neill + Partners and legal advisor Sullivan & Cromwell. Jones Day also served as legal advisor to FirstMerit’s board.
Steve Steinour, president, CEO and chair of Huntington, said the bank is pleased to come together with FirstMerit to create a regional bank with added customer convenience and an enhanced portfolio for consumers and businesses.
“I believe the strength of this deal is both organizations already understand the needs and goals of our Midwestern customers and communities,” Steinour said. “Our combined track records of service excellence and efficient financial management will add value for our collective shareholders, customers, communities and colleagues.”
Both companies have served consumers, small business and middle-market businesses in Midwest communities for nearly 150 years.
Paul Greig, FirstMerit president, CEO and chairman, said joining with Huntington creates an opportunity to combine the companies’ commercial, small business, wealth and consumer expertise, while giving all customers greater access to services.
“We will also leverage our strong credit culture and continue our mutual tradition of community involvement to help our Midwest markets grow,” Greig said. “We have every confidence that the integration with Huntington will be smooth and seamless for our customers and our communities and are pleased with the commitments that Huntington has made to our employees and communities.”
Huntington Bancshares has $71 billion in assets.
The regional bank holding company, founded in 1866, has a network of nearly 750 branches across six Midwestern states, including Michigan.
FirstMerit had about $25.5 billion in assets, as of Dec. 31, 2015.
FirstMerit Corporation has 366 banking offices throughout Ohio, Michigan, Wisconsin, Illinois and Pennsylvania.