Regional U.S. lender Huntington Bancshares (HBAN) is buying smaller rival Cadence Bank (CADE) in an all-stock deal worth $7.4 billion U.S.
The acquisition is the latest example of a mergers and acquisition (M&A) wave that is sweeping across U.S. regional banks as they look to grow in size and compete with larger lenders.
Dealmaking on Wall Street is picking up under the Trump administration, which has simplified and sped up merger approvals.
Analysts say the fragmented nature of the U.S. banking system leaves plenty of room for consolidation, especially among smaller regional players.
Earlier in October, Fifth Third (FITB) agreed to buy regional rival Comerica (CMA) for $10.90 billion U.S.
The purchase of Cadence Bank, valued at $39.77 U.S. per share, will create a top 10 American bank with assets of $276 billion U.S. and deposits of $220 billion U.S.
Huntington said it will issue 2.475 shares for each outstanding share of Cadence common stock that it does not already own.
The stock of Huntington Bancshares is down 1% this year and trading at $16.07 U.S. per share.
Cadence Bank’s stock is up 8% on the year and changing hands at $36.49 U.S. a share.
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