Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: Huntington, FirstMerit merger gets Justice Department okay, (Jul 13, 2016)

By Jeffrey May, J.D.

Huntington Bancshares Incorporated and FirstMerit Corporation have agreed to sell 13 branches in Northeast Ohio to resolve antitrust concerns that arose from their proposed merger, the Department of Justice Antitrust Division announced today. The deal, which will make Huntington the largest bank in Ohio based on deposits, remains subject to the final approval of the Board of Governors of the Federal Reserve System.

The Justice Department will advise the Federal Reserve Board that it does not intend to challenge the merger provided that:

1. the parties divest the branch offices, associated loans and deposits and the entire customer relationships associated with the divestiture branches;

2. the parties commit to the Federal Reserve Board that they will comply with the agreement with the Justice Department; and

3. the parties’ commitments to the Justice Department are included as a condition to any order the Federal Reserve Board enters allowing the transaction.

The transaction apparently raised concerns about competition in Ohio’s Ashtabula and Stark counties. The banks will divest one branch in Ashtabula and one branch in Jefferson in Ashtabula County. In addition to divesting six branches in Canton, the banks will sell five other branches in Stark County.

Huntington is a regional bank holding company headquartered in Columbus, Ohio, with a network of more than 750 branches and more than 1,500 ATMs across six Midwestern states.

FirstMerit Corporation is a financial services company headquartered in Akron, Ohio, with 368 banking offices and 400 ATM locations in Ohio, Michigan, Wisconsin, Illinois, and Pennsylvania.

Huntington announced shareholder approval of the deal last month. The banks anticipate completing the merger, which was made public in January, in the third quarter of 2016.

Companies: FirstMerit Corporation; Huntington Bancshares Incorporated

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