Feds say merged KeyCorp, First Niagara must sell 18 branches
ALBANY, N.Y. (AP) — KeyCorp and First Niagara Financial Group have agreed to sell 18 of First Niagara’s western New York branches to satisfy antitrust issues arising from the planned combination of the banks.
The U.S. Justice Department says Thursday it required the divestitures as part of Cleveland-based KeyCorp’s proposed $4.1 billion acquisition of First Niagara.
The branches to be sold represent about $1.7 billion in deposits. They’re clustered around Buffalo, where First Niagara has headquarters.
KeyCorp would become the nation’s 13th largest bank, with $135 billion in assets and more than 1,000 branches. The merger is still subject to Federal Reserve System approval.
KeyCorp operates in Ohio, New York, Washington, Oregon, Indiana, Colorado, Utah, Maine, Florida, Michigan, Alaska and Vermont. First Niagara has branches in New York, Pennsylvania, Connecticut and Massachusetts.