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M&T Bank buying People’s United in $7.6 billion all-stock deal

M&T Bank Corp. is buying People’s United Financial Inc. in an all-stock deal valued at about $7.6 billion.
M&T Bank Corp. is buying People’s United Financial Inc. in an all-stock deal valued at about $7.6 billion.Daniel Tepper/Bloomberg

M&T Bank Corp. is buying People’s United Financial Inc. in an all-stock deal valued at about $7.6 billion.

Branches of the two regional banks are sprinkled throughout the Northeast and mid-Atlantic.

People’s United shareholders will receive 0.118 of a share of M&T common stock for each share they own. People’s United shareholders will collectively own approximately 28 percent of the combined business. The combined company will have approximately $200 billion in assets and a network of more than 1,100 branches and more than 2,000 ATMs in 12 states from Maine to Virginia and the District of Columbia.

M&T had been active in acquisitions, but People’s United would be the first major deal in almost six years.

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As the second largest retail bank based in New England after Citizens Bank, People’s United has long been considered an attractive acquisition target for big banks looking to grow their presence in this region. People’s United became a major regional player with its acquisition of Vermont-based Chittenden Corp. about 13 years ago. That deal brought People’s a number of branches in central and western Massachusetts. Later, People’s expanded into the Boston area, most notably with the acquisition of Belmont Savings Bank in 2019. M&T said it will make Bridgeport, Conn., the current home base for People’s United, its New England headquarters after its deal with People’s United is completed.

The deal, expected to close in the fourth quarter, still needs a sign-off from shareholders of both companies.

Jon Chesto of the Globe staff contributed to this report.