Citizens’ investors will receive 1.37 shares of FirstMerit common stock in exchange for each of their shares, the banks said today in a statement. The deal values Citizens 18 percent higher than yesterday’s closing price, or about $23.51 per share.
FirstMerit expects to repay Flint, Michigan-based Citizens’s $345 million of Troubled Asset Relief Program preferred stock, including $45 million of deferred dividends. Following the transaction, FirstMerit will have $24 billion in assets, $15 billion in loans and $19 billion in deposits, according to the statement. The move helps FirstMerit expand into Wisconsin and Michigan and strengthens its presence in northeast Ohio, according to the statement.
“With a five-state reach that will extend from western Pennsylvania to Wisconsin, FirstMerit looks to become the bank of choice among businesses and individuals across the upper Midwest,” FirstMerit Chief Executive Officer Paul Greig said in the statement.
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