BUFFALO, N.Y. AND CLEVELAND — Shareholders of First Niagara Financial Group (NASDAQ: FNFG) and KeyCorp (NYSE: KEY) have overwhelmingly approved the proposed merger between the two financial giants.
The votes were held today at special meetings in each of the companies’ headquarters — Buffalo for First Niagara and Cleveland for KeyCorp. Over 90 percent of shareholders who voted approved of the merger.
Shareholders who did not participate counted as “no” votes, but even with those accounted for, approximately 75 percent voted in favor of the merger, according to The Buffalo News. The deal totals $3.5 billion and is structured as KeyCorp acquiring First Niagara, The News reported.
“I would like to thank our shareholders for their support and their vote of confidence,” says Beth Mooney, chairman and CEO of KeyCorp. “KeyBank and First Niagara are indeed better together — a powerful combination that will bring a new level of capabilities and expertise to our clients, new opportunities for our employees, and even greater investment in our communities.”
KeyCorp and First Niagara entered into a merger agreement on Oct. 30, 2015. The merger is still subject to regulatory approvals. Closing is expected during the third quarter of this year.
KeyCorp is one of the nation’s largest bank-based financial services companies, with assets of approximately $95 billion at the end of 2015.
First Niagara is a bank with approximately 390 branches, $40 billion in assets, $29 billion in deposits, and approximately 5,400 employees serving New York, Pennsylvania, Connecticut and Massachusetts.
KeyCorp’s stock closed at $11.41 per share on Tuesday, March 22, down from $14.65 a year ago. First Niagara’s stock closed at $9.92 on Tuesday, up from $8.86 a year ago.
— Jeff Shaw