Huntington Bank acquires FirstMerit in merger

Huntington Bancshares said Tuesday that it had reached a deal valued at $3.4 billion to acquire Ohio rival FirstMerit, creating a sprawling Midwestern bank with a presence in eight states.

The combined company will have nearly $100 million in assets, making it the largest bank in Ohio, according to Huntington.

Huntington National Bank will absorb FirstMerit Bank as part of the stock-and-cash transaction worth the equivalent of $20.14 per share.

FirstMerit shares jumped 16.5% to $17.91 at 9:49 a.m. Tuesday.

The deal gives Huntington its first operations in Chicago and Wisconsin.

"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,” Huntington CEO Steve Steinour said in a statement. “I believe the strength of this deal is that both organizations already understand the needs and goals of our Midwestern customers and communities.”

The companies expect to finalize the deal in the third quarter after receiving regulatory authorization.

Columbus, Ohio-based Huntington, founded in 1866, controls $71 billion in assets with 750 branches in six Midwestern states.

Akron, Ohio-based FirstMerit controls $25.5 billion in assets and operates 366 branches in five states.

Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.