Boston, MA 12/18/2013 (wallstreetpr) – Hudson City Bancorp, Inc. (NASDAQ:HCBK) and M&T Bank Corporation (NYSE:MTB) announced yesterday that they need an additional time to obtain a regulatory determination on the applications that are critical to finish their proposed merger. For this reason, both the companies have agreed to extend the time until December 31, 2014 to complete the merger pursuant to Amendment No. 2 to the Plan and Agreement of Merger. However, the exchange ratio and consideration will be same as provided in the Merger Agreement.
Time Of Merger
M&T Bank Corporation in early 2013 learned that the Federal Reserve observed certain regulatory concerns with systems, processes and procedures of the company related to anti-money-laundering compliance program and Bank Secrecy Act of the company thus, it took an initiative to fully address the concerns of Federal Reserve. M&T and Hudson City, in April 2013, entered into their first phase of the Agreement of Merger.
Why Take Time?
During the pendency of the merger, Hudson City wants to pursue its Strategic Plan initiatives. Thus, both the parties agreed to amend the Merger Agreement so as to provide permission to Hudson City to take action under its Strategic Plan. It is not confirmed by the Federal Reserve that it will approve the merger or not. However, the two concerned companies are confident that the merger would be completed in the latter half of the year 2014.
Words Of Management Of Hudson City
The Chairman and the Chief Executive Officer of Hudson City, Mr. Ronald E. Hermance, Jr. said that the company is gratified that M&T sees the value in the Hudson City franchise even when all the parties are disappointed by the further delay in transaction. He said that the deal with M&T will bring best for the company and its shareholders according to their Board of Directors. Also this company will diversify the business model of Hudson City by pursuing its Strategic Plan.