M&T Bank’s acquisition of People’s United approved by CT and NY regulators

M&T Bank Corp. has received approval from the New York State Department of Financial Services and the Connecticut Department of Banking to complete its $7 billion acquisition of People’s United Bank.

M&T’s pick-up of the Bridgeport institution was announced in February, but by July was facing objections from several government officials, including U.S. Sen. Richard Blumenthal (D-Connecticut), Connecticut Attorney General William Tong, and Bridgeport Mayor Joe Ganim.

Much of that consternation came in the wake of M&T’s announcement that the transaction would cost 750 jobs, including 661 in Bridgeport. M&T, which is headquartered in Buffalo, insisted that it would retain nearly 80% of the People”™s United workforce, including nearly all branch and customer-facing employees. It further said it would provide all affected employees with severance benefits including career transition assistance.

The acquisition still requires approval from the Federal Reserve.