M&T Bank Corp. has agreed to buy Hudson City Bancorp, expanding the financial firm's reach on the east coast.
Under the terms of the deal, M&T will pay roughly $3.7 billion in cash and stock. The price represents a nearly 16 percent premium to Hudson City's market value on Friday.
With the acquisition, M&T will bolster its presence in key markets, including New York, New Jersey and Connecticut. In all, M&T will add 135 branches.
“As a thrift, Hudson City focused primarily on deposits and mortgages,†Robert G. Wilmers, M&T chief executive, said in a statement. “M&T will build on Hudson City's loyal customer base to create a comprehensive community banking franchise.â€
