BY Richard Summerfield
Huntington Bancshares Inc has agreed to buy TCF Financial Corp for $6bn in stock. The merger will create a company worth about $22bn in market value, the companies said in a statement.
The deal is expected to complete in the second quarter of 2021, subject to customary closing conditions, including regulatory and shareholder approvals. The combined company will have about $168bn in assets, $117bn in loans and $134bn in deposits. Huntington expects the transaction to be 18 percent accretive to earnings per share in 2022.
Stephen Steinour, chief executive of Huntington, will become chairman, president and chief executive of the combined holding company. Gary Torgow, chairman of TCF Financial Corp, will serve as chairman of the combined banks’ board of directors.
“This merger combines the best of both companies and provides the scale and resources to drive increased long-term shareholder value,” said Mr Steinour. “Huntington is focused on accelerating digital investments to further enhance our award-winning people-first, digitally powered customer experience. We look forward to welcoming the TCF Team Members. Together we will have a stronger company better able to support our customers and drive economic growth in the communities we serve.”
“This partnership will provide us the opportunity for deeper investments in our communities, more jobs in Detroit, an increased commitment in Minneapolis and a better experience for our customers,” said Mr Torgow. “We will be a top regional bank, with the scale to compete and the passion to serve. Merging with the Huntington platform will be a great benefit to all of our stakeholders and will drive significant opportunities for our team members.”
The Huntington/TCF transaction is one of a number of deals announced recently by regional US lenders, many of which have been moved to agree mergers in light of softer financial regulations and lower corporate taxes introduced by the Trump administration. In November, Spain’s BBVA sold its US business to PNC Financial Services Group Inc for $11.6bn in cash in one of the most eye-catching deals.
News: Huntington buys TCF for $6 billion in U.S. regional bank merger wave