US-based M&T Bank has finalised an agreement to acquire People’s United Financial in an all-stock transaction valued at $7.6bn.

The merged entity is expected to have approximately $200bn in assets. It will have a network of 1,100 branches and over 2,000 ATMs spread across 12 states in the US.

Under the agreement, shareholders of People’s United will receive 0.118 of M&T common stock for each share they own.

Post-transaction, People’s United shareholders will together own 28% of the combined company.

Through this deal, M&T is expecting a 10-12% increase in earnings per share by 2023.

Founded in 1842, People’s United Bank offers commercial banking, retail banking and wealth management with a network of over 400 retail branches in the US.

M&T chairman and CEO René Jones said: “In People’s United, we have found a partner with an equally long history of serving and supporting customers, businesses and communities.

“Combining our common legacies and our complimentary footprints will strengthen our ability to serve our communities and customers, and provide solutions that make a difference in people’s lives.”

The merger has received approval from managing boards of both companies and is subject to regulatory and shareholder approval.

The deal is expected to be completed by the fourth quarter of this year.

People’s United chairman and CEO Jack Barnes said: “The merger extends our reach by providing customers access to a larger banking network and an expanded array of services. I am confident our shared community banking philosophies will provide significant long-term value for our shareholders, employees and loyal customers.”

M&T Bank is a regional financial services company based in New York with an asset value of $120bn.

M&T offers a range of services including banking, insurance, investments, mortgage and commercial services. It has a network of 750 branches and 1800 ATMs.