US-based Huntington Bancshares has inked a definitive agreement to acquire TCF Financial in an all-stock deal that values TCF at $6bn.

Huntington Bancshares is the parent company of The Huntington National Bank, while TCF Financial is the parent company of TCF National Bank.

The deal was unanimously approved by the boards of directors of both banks.

Under the deal terms, TCF will merge into Huntington and will operate under the Huntington brand name, post-transaction closing.

The all-stock deal represents an 11% premium to TCF Financial’s closing price on Friday, 11 December 2020.

The merged entity will have nearly $22bn in total market value, $168bn in assets, $117bn in loans, and $134bn in deposits.

It will have two headquarters – a commercial banking base in Detroit, Michigan, which will house 800 employees – and a retail bank in Columbus, Ohio.

Huntington anticipates the transaction to be 18% accretive to its earnings per share (EPS) in 2020.

Huntington operates 839 branches in seven US states and with TCF’s 475 branches, it will expand into Minnesota, Colorado, Wisconsin, and South Dakota, and strengthen its presence in Chicago.

Subject to the receipt of regulatory and shareholders approvals, the merger is expected to close in the second quarter of 2021.

Huntington Bancshares chairman, president, and CEO Stephen Steinour said: “This merger combines the best of both companies and provides the scale and resources to drive increased long-term shareholder value.

“We look forward to welcoming the TCF team members. Together we will have a stronger company better able to support our customers and drive economic growth in the communities we serve.”

The Huntington National Bank chairman of the board of directors Gary Torgow said: “This partnership will provide us with the opportunity for deeper investments in our communities, more jobs in Detroit, an increased commitment in Minneapolis and a better experience for our customers.

“Merging with the Huntington platform will be a great benefit to all of our stakeholders and will drive significant opportunities for our team members.”