By RTT News,
December 17, 2013, 08:24:00 AM EDT
M&T Bank And Hudson City Again Extend Deadline To Complete Proposed Merger
(RTTNews.com) - M&T Bank Corp. ( MTB ) and Hudson City Bancorp, Inc. ( HCBK ) announced Tuesday that they expect additional time will be required to obtain a regulatory determination on the applications necessary to complete their proposed merger.
As previously indicated, the Federal Reserve identified certain regulatory concerns with M&T's procedures, systems and processes relating to M&T's Bank Secrecy Act and anti-money-laundering compliance program. Early in 2013, M&T commenced a major initiative to fully address the Federal Reserve's concerns. M&T is devoting substantial resources towards this initiative and believes that it is making significant progress.
Based upon discussions with the Federal Reserve, M&T said it expects that additional time will be required for the Federal Reserve to act on the merger application, and that any such action is not likely to occur before the latter part of 2014.
As a result, M&T and Hudson City have agreed to extend from January 31, 2014 to December 31, 2014 the date after which either party may elect to terminate the merger agreement if the merger has not yet been completed. However, there can be no assurances that regulatory approval will be obtained or that the merger will be completed by that date.
M&T and Hudson City plans to close the merger as soon as possible following the receipt of all necessary regulatory approvals and satisfaction of all other conditions to closing.
In order for Hudson City to pursue its Strategic Plan initiatives during the pendency of the merger, the parties agreed to amend the Merger Agreement to permit Hudson City to take action under its Strategic Plan. M&T has received no assurance from the Federal Reserve as to whether or when the Federal Reserve will approve the merger. However, M&T and Hudson City believe that the earliest time the merger could be completed is in the latter half of 2014, Hudson City said in a separate press release.
In April 2013, M&T Bank said it would need more time to close its $3.7 billion proposed acquisition of Hudson City Bancorp due to anti-money laundering and other concerns raised by the Federal Reserve. M&T and Hudson City planned to extend the date after which either party may terminate the deal if it has not yet been completed from August 27, 2013 to January 31, 2014.
In August 2012, Buffalo, New-York M&T agreed to acquire Hudson City in a cash and stock deal valued at about $3.7 billion. If the deal consummates, M&T will acquire New Jersey-based Hudson City's network of 135 branch offices, and the combined company would operate a network of 870 branches that would stretch from Connecticut to Virginia.
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