NewAlliance to be bought by First Niagra
Because of the financial crisis, many big ticket takeover deals have been staying down. Most of them coming from, the financial particularly the banking sector. But now, the things are beginning to change.
The First Niagara Financial Group has said that it will be taking over NewAlliance Bancshares in a deal worth $1.5 billion. The money will be paid in cash as well as stock.
Post the deal, First Niagara will come into the ranks of the top 25 banks and will be providing long-expected wave of consolidation in the banking industry.
Experts believe that while the deal will not be able to bring about a total change, it certainly has brought the much-needed good news for the industry.
The deal becomes more important because many of the small and medium sized banks have been waiting for this to happen. The primary reason being that the pace at which the government used to support failed banks has gone down substantially.
Also, many of the customers of NewAlliance are unhappy with the kind of loan books and the service that it has been providing.
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