US: Ohio bank agrees to divest 13 branches to settle antitrust concerns

The US Justice Department announced on Wednesday that Huntington Bancshares Incorporated and FirstMerit Corporation have agreed to sell more than a dozen branches in Northeast Ohio to settle antitrust concerns stemming from last month’s proposed merger between the regional banks.

Under the agreement, the Banks have agreed to divest 13 of FirstMerit’s branches in Ashtabula and Stark counties, amounting to deposits that totaled $735 million as of May 31. Last month, shareholders from both companies approved Huntington’s $3.4 billion stock and cash acquisition of FirstMerit, an Akron-based regional bank holding company with approximately $26.1 billion in assets. Huntington National Bank, which is headquartered in Columbus, Ohio, operates more than 750 branches and 1,500 ATMs in the Midwest. Huntington had roughly $73 billion in assets when the proposed merger was approved on June 13.

“The Banks will work with the purchaser of the divested branches to provide as seamless a transition as possible,” FirstMerit Corporation said in a statement. “It is expected that the sale of the branches will be consummated within 180 days following completion of the merger.”

At the same time, the Justice Department said the companies have agreed to suspend existing agreements with branch managers and loan officers in the aforementioned counties for a period of 180 days after the merger is completed. The transaction still needs to receive final regulatory approval from the Board of Governors of the Federal Reserve. The banks will also be precluded from entering into new, non-compete agreements with the 13 branches that are divested, the Justice Department said in a statement.

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