WASHINGTON (Reuters) - The Federal Reserve said on Wednesday it had approved M&T Bank Corp’s (MTB.N) acquisition of Hudson City Bancorp Inc HCBK.O, three years after the deal was first proposed.
M&T, based in Buffalo, New York, agreed to buy Paramus, New Jersey-based Hudson City for $3.7 billion in 2012, but the lenders were unable to close the deal because regulators were concerned about M&T’s anti-money laundering policies.
The Department of Justice had determined that the merger would not have a significantly adverse effect on competition, the Federal Reserve said, adding that the banking agencies have not objected to the deal. (1.usa.gov/1M1YZwi)
After the merger, M&T Bank will become the 25th largest depository financial institution in the United States, with assets of about $132.5 billion and deposits of about $90.8 billion, the Federal Reserve said.
M&T Bank shares were up 1 percent at $121.74 in late afternoon trading on the New York Stock Exchange, while Hudson City shares were up 6.7 percent at $10.14.
Reporting by Timothy Ahmann and Rachel Chitra in Bengaluru; Editing by Chizu Nomiyama and Anil D'Silva