Regions Financial Corp to acquire AmSouth Bancorp

Regions Financial Corp to acquire AmSouth Bancorp

Regions Financial Corp (NYSE:RF) has said that they are acquiring rival Alabama-based bank AmSouth Bancorp. The deal is worth around a massive USD 10 billion and would help the two groups create a Top 10 bank that can compete on better terms with bigger rivals.

The deal would see AmSouth shareholders getting 0.7974 Regions share for each AmSouth share. These shares are worth $28.33 a share based on Regions’ Wednesday closing price.

Both the groups gained in the stock market after this news was announced in the media. The combined entity would retain the Regions name and would have a market value of about $26 billion. They would have $138 billion in assets and 2,000 branches in 16 U.S. Southeast states from Texas to Florida.

However, the two banks have not released any details on whether the merger would result in any kind of job cuts, as they would have overlapping business operations now.