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June 1 (Reuters) - Old National Bancorp and First Midwest Bancorp Inc have agreed to merge in an all-stock deal valued at about $6.5 billion, creating a lender with $45 billion in assets.
First Midwest investors will receive 1.1336 shares of Old National common stock for each unit held under the deal, the companies said in a joint statement on Tuesday.
First Midwest shareholders are expected to own 44% of the combined company following the close of the deal, which is likely to happen in late 2021 or early 2022.
The merger follows a clutch of deals in the sector after a loosening of financial regulations and lowering of corporate taxes under former U.S. President Donald Trump.
M&T Bank Corp in February agreed to buy People’s United Financial Inc in an all-stock deal valued at about $7.6 billion, while Spain’s BBVA agreed to sell its U.S. business to PNC Financial Services Group Inc for $11.6 billion in cash in one of the biggest global bank deals last year.
Keefe, Bruyette & Woods, a Stifel company, served as the exclusive financial advisor to Old National, while J.P. Morgan Securities LLC advised First Midwest.
Reporting by Noor Zainab Hussain and Sohini Podder in Bengaluru; Editing by Aditya Soni