M&T Bank (NYSE: MTB) plans to acquire People's United Financial (NASDAQ: PBCT) in another big deal among consolidating regional banks. It will be an all-stock transaction worth $7.6 billion, valuing shares of People's United at $17.70, or 164% of tangible book value. The purchase price represents a nearly 13% premium over the closing price of People's shares last Friday. The deal will bring together two of the largest regional banks headquartered in the Northeast (M&T is based in Buffalo, New York, and People's United in Bridgeport, Connecticut) and create a bank with roughly $200 billion in assets. Image source: Getty Images. The integration of People's United will stretch M&T's footprint from the mid-Atlantic into New England. "Combining our common legacies and our complementary footprints will strengthen our ability to serve our communities and customers, and provide solutions that make a difference in people's lives," said René Jones, CEO of M&T, who will lead the combined company. Five current board members of People's United will join M&T's board of directors following completion of the transaction. The deal will be immediately accretive to M&T's tangible book value and will also be accretive to earnings in 2022 by 7% to 8%. That means that the earnings of the combined company will be higher than the combined earnings of both companies on a stand-alone basis. M&T expects to be able to take out 30% of People's United's annual expense base, including People's planned closures of its Stop & Shop branches, which hasn't happened yet. The deal is expected to close in the fourth quarter of the year. Shares of People's United were up close to 11% at one point this morning, while shares of M&T traded higher to open the day as well. 10 stocks we like better than M & T BankWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and M & T Bank wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source