Question

what is company merger and aquisition. explain TCF Bank merger and its benefits.

Answer 1

Company merger & acquisition:

Merger or acquisition is defined as consolidation of assets or companies through various types of financial transactions. It can include various transactions like mergers, acquisitions, consolidations, tender offers, purchase of assets, management acquisitions. In both these transactions a couple of companies are getting involved. It can also refer to department at financial institutions that deals with mergers or acquisitions.

TCF bank merger & its benefits:

A proposed merger has been announced between chemical & tcf banks that can bring more benefits to the city grow the tax base & also expanding philanthropic work done to help in recovery of Detroit

The companies intend to combine under the tcf bank in order to create the largest 50 banks in the country with its head quarters in Detroit. It can also maintain significant presence in markets like Chicago, midland & Minneapolis. It can also provide more opportunities for Detroit & Michigan

The merger can also bring more talent, more paying jobs. The deal has a pending approval but the company after merger would be as twice large as Detroit based chemical financial corp. with $45 billion in assets & a $7 billion market capitalization.

The merger can also double the number of branches in south east Michigan for the bank’s customers, moving more jobs to Detroit. It is also good news for the state & also its economy. It can also make the city more attractive for other businesses.

The deal between chemical and Wayzata, Minnesota-based TCF Financial Corp. is an "all-stock merger of equals," according to the companies. It would grow TCF’s presence in the Midwest and expand Chemical’s footprint west.

Combined, the banks represent $34 billion in total deposits and more than 500 branches across nine states, including in four of the top 10 Midwest markets. Chemical's strengths in local business banking and TCF's in national lending also create a balanced loan profile.

The deal is expected to save approximately $180 million by 2020 with "minimal reductions in branches," according to the companies.