M&T Bank Corp. is approaching a deal to buy People’s United Financial Inc. for more than $ 7 billion, according to people familiar with the matter, most recently in a series of links to regional banks.
The companies are discussing a stock deal that could be announced immediately this week, people said, assuming the talks do not fall apart. Headquartered in Bridgeport, Conn., People’s United has a market value of approximately $ 6.6 billion, while M&T in Buffalo, New York, is more than $ 19 billion.
Combined, the banks would have assets of more than $ 200 billion, with a branch network concentrated in the Northeast and Mid-Atlantic regions. The agreement would facilitate M & T’s expansion into the Boston market and strengthen its position in New York and Connecticut.
For M&T, a serial acquirer, it would be its first major takeover since the acquisition of Hudson City Bancorp Inc. in 2015. The agreement was postponed for three years after regulators found “significant weaknesses” in the fight against money laundering and consumer money laundering at M&T. compliance programs.
M&T is among the largest regional lenders in the Northeast, with assets of $ 142.6 billion at the end of 2020. Commercial real estate loans comprise almost 40% of its portfolio, including some for the New York hotel sector. But the performance of bank loans, as well as that of many of his regional colleagues, has been better than expected in the last year.