Thursday, May 19 2022

New York-based lender M&T Bank and Bridgeport-based People’s United Bank have extended the window to complete their $7.6 billion merger as they still await federal approval of the deal, officials said. banks.

In a statement, M&T and People’s United officials said they had extended their merger agreement – first announced a year ago – until June 1.

The banks are still awaiting final approval from the Federal Reserve, which has yet to rule on the deal. Delays by the Fed’s board of governors caused potential partners to miss their first prospective deadline, set for the fourth quarter of 2021, and have now seemingly canceled their backup date, which was supposed to be February 21.

The deal could close sooner than June 1, depending on if and when the Federal Reserve approves the deal.

“M&T ​​and People’s United both remain committed to the merger and are seeking [the Federal Reserve’s] approval,” the banks in a joint post.

Although neither M&T nor United have officially addressed possible reasons for the heist, M&T Chairman and CEO Rene Jones at an industry conference in November that other, similar mergers and acquisitions of people were running at the same time.

Some analysts have speculated that the Federal Reserve may react to signals from the Biden administration, which has come out in favor of limiting bank mergers that could threaten competition and consumer choice.

Still, other deals have been struck in recent months, including the merger of Webster Bank and Sterling Bancorp, which completed their merger on February 1. The Federal Reserve signed this agreement on December 17.

Correction: An earlier version of this story incorrectly stated that M&T Bank and People’s United Bank had set a new June 1 closing date. Instead, the two banks extended their merger agreement until June 1. The deal could be done sooner, depending on timing. and whether the deal receives Federal Reserve approval.

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