<p><img src="https://static1.businessinsider.com/image/5f5792abe6ff30001d4e771f-2000/2020-03-17t193310z_2_lynxmpeg2g2b8_rtroptp_4_usa-stocks.jpg" border="0" alt="Trader NYSE green" data-mce-source="Lucas Jackson/Reuters"></p><p></p><bi-shortcode id="summary-shortcode" data-type="summary-shortcode" class="mceNonEditable" contenteditable="false">Summary List Placement</bi-shortcode><ul><li><strong>People's United Financial surged 10% on Monday after M&T Bank agreed to acquire the regional bank for $7.6 billion.</strong></li><li><strong>The proposed merger will be funded with stock, with M&T issuing 0.118 shares for each People's United share. </strong></li><li><strong>The combined bank will have $200 billion in assets, with locations in 12 states on the East coast.</strong></li><li><strong><a href="https://newsletter.businessinsider.com/join/4np/10-things-opening-bell'utm_source=markets&utm_medium=ingest'utm_source=markets&utm_medium=ingest'utm_source=markets&utm_medium=ingest'utm_source=markets&utm_medium=ingest" target="_blank" rel="noopener">Sign up here for our daily newsletter, 10 Things Before the Opening Bell</a>.</strong></li></ul><hr><p><a href="https://markets.businessinsider.com/stocks/pbct-stock">People's United Financial</a> surged as much as 10% on Monday after <a href="https://markets.businessinsider.com/stocks/mtb-stock">M&T Bank</a> <a href="https://www.prnewswire.com/news-releases/mt-bank-corporation-announces-agreement-to-acquire-peoples-united-financial-inc-301232266.html">agreed to acquire the regional bank</a> in a deal worth $7.6 billion.</p><p>M&T will fund the entire deal with stock, issuing 0.118 shares for each People's United share. The deal represents a 13% premium to Friday's closing price of People's United Financial.</p><p>The combined regional bank will have locations in 12 states throughout the Northeast and Mid-Atlantic and have approximately $200 billion in assets. </p><p>Upon the completion of the merger, People's United shareholders will collectively own 28% of the combined company.</p><p>"Combining our common legacies and our complementary footprints will strengthen our ability to serve our communities and customers, and provide solutions that make a difference in people's lives," M&T CEO Ren Jones said. </p><p>M&T expects the merger to be immediately accretive to its tangible book value per share, and 10%-12% accretive to its earnings per share in 2023. The combined bank expects to realize $330 million in annual cost synergies. </p><p>The proposed merger has been approved by the board of directors of both companies and is expected to close in the fourth quarter of 2021. </p><p>Shares of M&T traded flat in early Monday trades. </p><p><a href="https://markets.businessinsider.com/news/stocks/peoples-united-regional-bank-stock-market-merger-7-billion-2021-2-1030108011#comments">Join the conversation about this story »</a></p> <p>NOW WATCH: <a href="https://www.businessinsider.com/pikes-peak-hill-climb-colorado-most-dangerous-racetrack-2020-2">Why Pikes Peak is the most dangerous racetrack in America</a></p> Click here to read full news..