Huntington is set to acquire TCF Financial in a deal valued at $22 billion. Huntington Bancshares will merge with the Detroit-based financial corporation and the new company will keep Huntington’s name, while the TCF Financial Corporation name dies out. The two financial corporations gave a news release on Sunday to announce the new merger, which is set to close by the end of the second quarter in 2021.
The merger will see the new company having two different headquarters, to show their commitment to Detroit and Michigan. Huntington will maintain its Ohio headquarters and keep the Michigan headquarters of TCF Financial. The Ohio headquarters will be used for consumer banking and holding company services. The Detroit headquarters will be used as the new firm’s commercial banking branch.
“Detroit will be a co-headquarters with Columbus,” Stephen D. Steinour CEO of Huntington said. “We want the deal to be a win for both Michigan and Ohio. The only way this will be worth doing and to show our commitment to Detroit and Michigan is to have two headquarters.”
He also stated that board meetings would be held alternatively in Columbus and Detroit and that a second CEO office will also be available for him in Detroit. The announcement of the merger also contained information about TCF’s proposed office tower. The companies stated that the office tower will be opened sometime in the future. The new office, belonging to the new company, would house over 800 workers, Freep reports.
TCF Financial had originally been in Wayzata, Minnesota before 2018 when it merged with Chemical Bank in a deal valued at $3.6 billion. The new company then moved its headquarters to Detroit in the seventh month of that year, becoming the largest financial institution with its headquarters in Detroit.
The new merger between the two financial corporations will have to be approved by regulators and the shareholders of the two corporations. If the approval is given, the new company will have assets of about $168 billion and would rank 10 amongst its contemporaries in the United States.
Huntington pledged the sum of $5 billion in September as a part of a 5-year plan to help promote the growth of the economy of Michigan. The money will be used to help small local businesses, businesses belonging to marginalized groups, and some other members of the population. TCF also pledged $1billion, spread over the same period, to support businesses of minority groups. The TCF funds will now be added to Huntington’s pledged sum, according to reports.
The executives of the companies have stated that there would be no lay-offs, as the new company still wishes to maintain the reputation of being one of the largest financial institutions in the country. Steinour would be in charge of the new company, according to a statement he made on Sunday.