Two of the largest Virginia banks have gotten permission from federal and state regulatory agencies to move forward with an acquisition that will create the largest banking institution in the state. This nearly half a billion dollar deal should be complete by early next year, according to an executive from the purchasing corporation.
The Virginia State Corporation Commission and the Federal Reserve Bank of Richmond have given their blessing to the acquisition, allowing Union First Market Bankshares Corp. to proceed with the all stock deal to acquire StellarOne Corp. The deal, totaling $445.1 million, would bring the smaller bank under the wing of the larger Union First Market. The CEO hopes to have the deal finalized by the beginning of 2014, as their teams work to integrate the two corporations. With this new acquisition, Union First Market will be the largest banking institution in Virginia, with deposits totaling $5.8 billion.
Union First Market consists of 90 branches in Virginia, as well as various non-bank related interests including mortgage and insurance companies. The acquisition of StellarOne adds its 50 branches and two loan offices to the fold. Reports say that 90 jobs will be displaced from StellarOne's operations center in Christiansburg as operations are consolidated under Union First Market. Those 90 employees will have priority in filling 50 jobs that will be added at Union's operations center in Caroline County.
Regulatory compliance and other issues dominate business acquisitions and mergers and requires a high attention to detail in order to properly execute them. An attorney who has extensive experience in mergers and acquisitions may be able to help navigate the process with minimal issues, leading to a successful transaction between the businesses.
Source: Virginia Business, "Union First Market-StellarOne merger deal gets regulatory approval", October 14, 2013