The Department of Justice announced that Huntington Bancshares Incorporated and TCF Financial Corporation have agreed to sell 13 branches in Michigan, with approximately $872.3 million in deposits, to resolve antitrust concerns arising from Huntington’s planned acquisition of TCF Bank.
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The divested assets include all of the deposits and loans associated with the divested branches, as well as the physical assets.
Under the agreement with the Justice Department, the parties will divest branches in Michigan, located in Arenac, Charlevoix, Crawford, Newaygo, Otsego, Mecosta, Shiawassee, Wexford and Missaukee counties, and in the City of Midland.
The companies also have agreed to suspend existing, and not to enter into new, non-compete agreements with branch managers and loan officers located in the divestiture counties for a period of 180 days following the consummation of their merger.
Further, the companies have agreed that any traditional branches located in any overlap market in Michigan and Ohio that are closed within three years of the merger’s closing will be sold or leased to an insured depository institution that offers deposit and credit services to small businesses. As a result of the acquisition, Huntington will become the 25th largest bank holding company based on assets.
The proposed merger is subject to the final approval of the Board of Governors of the Federal Reserve System. The department’s role when reviewing a proposed bank merger necessarily focuses on the merger’s competitive effects.
The department has advised the Federal Reserve Board that the department will not challenge the merger provided that the parties divest branches in certain areas of overlap and agree that any traditional branches in Michigan and in the five overlapping counties in Ohio that are closed within three years following the merger, will be marketed to an institution with a demonstrated record of providing services and loans to the local community.
The parties’ commitments to the department are included as a condition to the Federal Reserve Board Order allowing the transaction. ■