Bulletin
Investor Alert

New York Markets Open in:

Market Pulse Archives

Jan. 28, 2019, 6:51 a.m. EST

TCF Financial to merge into Chemical Financial to create Midwest bank with $45 billion in assets

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    TCF Financial Corp. (TCF)
  • X
    SPDR S&P Regional Banking ETF (KRE)

or Cancel Already have a watchlist? Log In

By Tomi Kilgore

Chemical Financial Corp. and TCF Financial Corp. /zigman2/quotes/202459217/composite TCF +5.34% announced Monday an all-stock "merger of equals," in which TCF will merge into Chemical to create a Midwest bank with a combined $45 billion in assets. Under terms of the deal, TCF shareholders will receive 0.5081 Chemical shares for each TCF share they own. Based on Friday's stock closing prices, the deal values TCF shares at $21.58 each, which matches Friday's closing price. TCF had a market capitalization of $3.60 billion on Friday, and Chemical's market cap was $3.03 billion. Once the deal closes, which is expected in the late third quarter or early fourth quarter of 2019, TCF shareholders will own 54% of the combined company. The companies expect to generate about $180 million in annual cost synergies by 2020, with minimal reductions in branches. Shares of TCF have gained 4.3% over the past three months, while Chemical's stock has slipped 3.0%, the SPDR S&P Regional Banking ETF /zigman2/quotes/200108291/composite KRE +4.94% has tacked on 3.0% and the S&P 500 /zigman2/quotes/210599714/realtime SPX +1.05% has edged up 0.2%.

/zigman2/quotes/202459217/composite
US : U.S.: Nasdaq
$ 27.62
+1.40 +5.34%
Volume: 859,223
July 10, 2020 4:00p
P/E Ratio
15.89
Dividend Yield
5.07%
Market Cap
$4.20 billion
Rev. per Employee
$297,990
loading...
/zigman2/quotes/200108291/composite
US : U.S.: NYSE Arca
$ 35.88
+1.69 +4.94%
Volume: 9.69M
July 10, 2020 4:00p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,185.04
+32.99 +1.05%
Volume: 2.41B
July 10, 2020 5:09p
loading...

This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.