CIT Surges as Merger with First Citizens Gets Fed Nod -Breaking
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By Dhirendra Tripathi
Investing.com – CIT Group stock (NYSE:) climbed 10% in Monday’s premarket after its proposed $2-billion merger with First Citizens BancShares (NASDAQ:) got the Federal Reserve’s approval.
CIT released an October 16, 2020 report stating that the bank will be the 19th-largest in America, with assets of over $100 trillion and deposits in excess of $80 billion.
First Citizens is a solid low-cost retailer deposit franchise. CIT, on the other hand, has strong commercial lending.
First Citizens stockholders own approximately 61%, and CIT stockholders almost 39% of the combined business.
Once cost savings have been fully phased into the process, banks anticipate that this transaction will increase earnings per share by more than 50%.
The new entity will operate as First Citizens, and it will be based out of Raleigh in North Carolina.
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