Old National, First Midwest to merge in $6.5 bln deal – Reuters

June 1 (Reuters) – Old National Bancorp (ONB.O) and First Midwest Bancorp Inc (FMBI.O) have agreed to merge in an all-stock deal valued at about $6.5 billion, creating a lender with $45 billion in assets.

First Midwest investors will receive 1.1336 shares of Old National common stock for each unit held under the deal, the companies said in a joint statement on Tuesday.

First Midwest shareholders are expected to own 44% of the combined company following the close of the deal, which is likely to happen in late 2021 or early 2022.

The merger follows a clutch of deals in the sector after a loosening of financial regulations and lowering of corporate taxes under former U.S. President Donald Trump.

M&T Bank Corp (MTB.N) in February agreed to buy People’s United Financial Inc (PBCT.O) in an all-stock deal valued at about $7.6 billion, while Spain’s BBVA (BBVA.MC) agreed to sell its U.S. business to PNC Financial Services Group Inc (PNC.N) for $11.6 billion in cash in one of the biggest global bank deals last year.

Keefe, Bruyette & Woods, a Stifel company, served as the exclusive financial advisor to Old National, while J.P. Morgan Securities LLC advised First Midwest.

Reporting by Sohini Podder in Bengaluru; Editing by Aditya Soni

Our Standards: The Thomson Reuters Trust Principles.

Source: news.google.com