M&T Bank to buy Hudson

 
Tim Wallace
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M&T BANK yesterday announced its plan to buy Hudson City Bancorp in a $3.7bn (£2.34bn) deal that could lead to further consolidation among regional banks in the US.

The acquisition – which has yet to be approved by shareholders or regulators – pushed shares in New Jersey-based Hudson up 15.7 per cent and New York State’s M&T up 4.76 per cent yesterday.

M&T plans to shrink Hudson City’s $43.6bn balance sheet by roughly one-third as it liquidates an investment portfolio.

It expects to gain about $25bn in deposits and $28bn in loans from the merger.