Citizens Financial which operates Citizens Bank branches in 11 states, announced on Wednesday (July 28) that it has entered into an agreement and merger plan valued at approximately $3.5 billion to acquire all outstanding shares of Investors Bancorp, Inc., Inc. for a combination of stock and cash.
The deal follows Citizens’ recent acquisition of HSBC East Coast branches and national online deposits, which is projected to close in the first quarter of 2022.
The boards of directors of both companies have unanimously approved the Citizens and Investors agreement and merger plan. The deal is expected to close by the second quarter of 2022, pending approval by Investors’ shareholders, as well as regulatory approvals and “other customary closing conditions.”
According to the agreement and merger plan, Investors’ shareholders would receive 0.297 of a share of Citizens Financial Group common stock and $1.46 in cash for each share of Investors that they own. After the transaction is complete, former Investors’ shareholders would collectively own about 14 percent of the merged company, the release stated.
“The acquisition of Investors, following on the heels of the acquisition of HSBC’s East Coast branches, further strengthens our formidable franchise in the northeast, together adding roughly one million customers and boosting our near and long-term growth potential,” Bruce Van Saun, chairman and chief executive officer of Citizens, said in the announcement. “We are confident in our ability to successfully integrate these acquisitions, and to over time deliver the same attractive offerings to customers and strong financial performance in the New York City metro region and New Jersey as we do in other major metro areas we serve.”
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