Two Midwest retail banking giants have agreed to merge in a deal worth $3.4bn.

Huntington Bancshares and FirstMerit Corporation announced late (in US hours) on Monday that they had agreed to merge.

The two Ohio-headquartered firms expect the deal, which is based on Huntington’s closing share price of $8.80 on Monday, to complete by the end of September this year.

Huntington chief executive Steve Steinour said:

We are very pleased to come together with FirstMerit to create a regional bank with added customer convenience, an enhanced portfolio of products for consumers and businesses, as well as strong market share. I believe the strength of this deal is that both organizations already understand the needs and goals of our Midwestern customers and communities.

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