Merger of Two Banks from the Northeast USA: A Milestone Worth Billions
- The merger is expected to be completed by the end of the second half of 2025.
- Berkshire Hills Bancorp and Brookline Bancorp merge with a total value of 1.1 billion US dollars.
Eulerpool News·
In the recent consolidation process among regional banks in the USA, Berkshire Hills Bancorp and Brookline Bancorp have agreed to a significant merger. This merger, conducted entirely on a stock basis, is valued at approximately $1.1 billion, equating to $12.68 per Brookline common share.
Unanimously approved by the respective boards of both institutions, the agreement stipulates that Brookline shareholders will receive 0.42 shares of Berkshire for each of their shares. The merger creates a company with total assets of $24 billion and 148 branches.
Nitin Mhatre, President and CEO of Berkshire Hills, describes the venture as a "transformational milestone" in the history of both esteemed institutions, which are committed to customer service and community involvement. The united corporation aims to provide an outstanding customer experience and create greater value for shareholders.
Following the merger, 51% of the new company will be owned by Berkshire shareholders, while Brookline shareholders will hold around 45%. The remaining 4% will be allocated to investors through a capital increase. Legally, Berkshire will acquire Brookline, but Brookline will act as the acquirer for accounting purposes, with Berkshire's assets and liabilities being valued at market rates at the time of closing.
The new financial conglomerate will operate with a single bank license from Massachusetts, under the name Brookline Bank. Paul Perrault, Chairman of Brookline Bancorp, views the merger as an opportunity to unite two historically significant franchises with shared values and customer focus in the Northeast.
The headquarters of the new company will be in Boston, Massachusetts, with operational centers throughout the Northeast. The board of directors will be equally composed with eight representatives each from Berkshire and Brookline. The banking structure will be divided into six regions, led by local leadership figures—equally divided between Berkshire and Brookline.
The completion of this transaction, subject to regulatory and shareholder approvals, is expected by the end of the second half of 2025. ![](https://cdn.eulerpool.com/images/data-analytics/better.jpg)
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