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M&T Bank, People’s United Provide Update on Pending Merger

July 27, 2021, 07:21 AM
Filed Under: Mergers & Acquisitions

M&T Bank Corporation and People's United Financial, Inc. issued an update on their pending merger to create a diversified, community-focused banking franchise. Last week, M&T issued Worker Adjustment and Retraining Notification (WARN) in two states, Connecticut and Vermont. The majority of the reductions would be effective in 2022.

Commitment to Communities

As part of the transaction, People's United's current headquarters in Bridgeport, CT, will become the New England regional headquarters for M&T, further strengthening the combined company's commitment to Connecticut and the region. Bridgeport will be a hub for many types of positions and bank activity, positioning the community for significant economic and job growth over time. Community giving and reinvestment will remain a central part of the joint company's mission through their respective foundations and the Bank, building on People's United's legacy of enhancing their communities for residents across the Northeast.

M&T we will be retaining nearly 80 percent of People's United team members overall, including almost all customer facing employees. M&T will be retaining substantially all People's United branch employees, including those who work in the Stop & Shop branches.

"The combination of M&T and People's United's is a unique opportunity to create a new organization that will strengthen our ability to serve our combined communities and customers, and provide solutions that make a difference in people's lives," said René Jones, Chairman and Chief Executive Officer of M&T, who will lead the combined company in the same capacity. "Since announcing the merger agreement, we have benefitted from hearing the perspectives of the many leaders and constituents in our communities to ensure that our plans are informed by their views. We look forward to developing long-lasting and meaningful relationships in our new communities, like those that we have across our footprint today, to provide significant long-term value."

Commitment to Growth and Opportunity for Employees and Local Communities

There are more than 1,500 open job positions across the combined footprint where People's United employees will receive priority consideration and support for hybrid and remote work. All affected employees will receive severance benefits including career transition assistance.

Jeffrey Tengel, President of People's United who will serve as an Executive Vice President of the combined company and the most senior executive based in Bridgeport, said, "In any merger, there are always difficult steps to take as you finalize workforce needs for the combined organization.  M&T has taken a thoughtful and empathetic view on every one of these decisions, assessing talent at the individual level to lessen impact. We will continue to do everything we can to support employees, both affected and unaffected, throughout this transition. We are confident we will be able to position the combined company so that we can deliver the services our customers need, where they need it, while retaining a significant number of jobs and opportunities for growth."

Path to Completion

The merger, which was unanimously approved by the boards of directors of each company is subject to the satisfaction of customary closing conditions, including receipt of regulatory approvals. Shareholders of M&T and People's United, at their respective special meetings of shareholders on May 26, 2021, approved the transaction.

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