KeyCorp, First Niagara Agree to Sell 18 Buffalo-area Branches
Thursday, April 28, 2016
Source: Rochester Business Journal
KeyCorp and First Niagara Financial Group Inc. have agreed to sell 18 of First Niagara’s branches around Buffalo, with close to $1.7 billion in deposits, the Department of Justice announced Thursday.
The sale resolved antitrust concerns regarding KeyCorp’s planned $4.1 billion acquisition of First Niagara and will ensure that the transaction does not harm competition for retail banking in the Buffalo area, the U.S. Justice Department said.
The companies have agreed to divest 13 branches in Erie County and five branches in Niagara County. The divested assets include commercial loans associated with divested banks. The companies also will suspend existing agreements and will not enter into new, non-compete agreements with their small-business and middle-market relationship managers and their retail regional and branch managers.
The banks have agreed to sell or lease branches closed within two years of the consummation of the merger, the Justice Department said.