Chemical Financial Corp. has received federal approval to acquire Minnesota-based TCF Financial Corp. and have the combined company’s headquarters in Detroit.
This follows recent approvals from the U.S. Office of the Comptroller of the Currency and from shareholders of both companies. The transaction is expected to close on Aug. 1, subject to satisfaction of customary closing conditions.
The deal is being positioned by both companies as “a merger of equals” in which TCF will merge into Chemical. However, the company will be renamed and operate as TCF Financial Corp. and will trade on NASDAQ under the ticker symbol TCF. Each current share of TCF common stock will be converted into 0.5081 shares of the new company common stock at closing.
“We are pleased to have received all necessary approvals for our merger of equals and we look forward to completing the transaction ahead of schedule,” TCF CEO Craig R. Dahl said in a statement. “Our teams have worked collaboratively and efficiently on our integration planning and their efforts will position us well to begin delivering on the value for shareholders we outlined at the onset of the transaction.”
Chemical Financial Executive Chairman Gary Torgow added: “With the support of our shareholders and approval from our regulators, we are ready to leverage the complementary strengths of both organizations as we come together to create a premier Midwest bank. We look forward to executing on our shared strategic vision to create value and opportunities for our shareholders, customers, employees and the communities we serve.”
Upon completion of the merger, the combined company is expected to have over $46 billion in total assets and be a top 10 bank in the Midwest based on deposit market share. With more than 500 combined branches across nine states, the new TCF will have a substantial presence in key Midwest markets including Detroit, Minneapolis, Chicago, Milwaukee and greater Michigan.
Chemical Financial is the largest banking company headquartered and operating branches in Michigan. Chemical operates through its subsidiary bank, Chemical Bank, with 212 banking offices located primarily in Michigan, northeast Ohio and northern Indiana. As of March 31, Chemical had total consolidated assets of $21.8 billion.
TCF is a Wayzata, Minn.-based national bank holding company. As of March 31, TCF had $24.4 billion in total assets and 312 bank branches in Illinois, Minnesota, Michigan, Colorado, Wisconsin, Arizona and South Dakota providing retail and commercial banking services. TCF, through its subsidiaries, also conducts commercial leasing and equipment finance business in all 50 states and commercial inventory finance business in all 50 states and Canada.