KeyCorp’s acquisition of Buffalo, New York-based First Niagara Financial Group has secured the go-ahead from the Federal Reserve.
First Niagara will merge into KeyCorp as part of the deal. The merger is still subject to the approval of the Office of the Comptroller of the Currency, and is slated to close in August 2016. Systems and client conversion is anticipated during the fourth quarter of 2016.
The cash-stock deal, valued at about $4.1bn, was announced in October 2015.
KeyCorp CEO and chair Beth Mooney said: "We are pleased to reach another important milestone as we bring Key and First Niagara together. I'm also proud that our two companies have worked so well together to meet our commitment for clients, communities, employees, and shareholders. We remain confident in and committed to meeting the growth and financial objectives of the First Niagara acquisition."
Meanwhile, KeyCorp has also agreed to cap the number of job cuts related to the First Niagara acquisition to 250. At the same time, the bank has also committed to hire at least 500 employees in the next three years.
First Niagara operates about 390 branches in New York, Pennsylvania, Connecticut, and Massachusetts. As of 31 March 2016, the bank oversaw $40bn in assets and $30bn in deposits.
Cleveland, Ohio-based KeyCorp managed assets of about $98bn as at 31 March 2016.