(Adds details on deal in paragraph 7, context on bank M&A paragraphs 2-3, CEO comment in paragraph 6) Oct 27 (Reuters) – Huntington Bancshares agreed to buy smaller rival Cadence Bank in an all-stock deal valued at $7.4 billion on Monday, underscoring a broader push by regional lenders to grow their footprint and compete with larger banks. Dealmaking has gathered pace under the Trump administration, which has pledged to simplify and speed up merger approvals, while analysts say the highly fragmented U.S. banking system leaves ample room for consolidation. Regional lenders are also pursuing mergers to diversify revenue, strengthen balance sheets and expand in faster-growing markets as they strive to compete with larger rivals. The Cadence deal, valued at $39.77 per share, will create a top-ten bank with assets of $276 billion and deposits of $220 billion, Huntington said. Cadence shares rose 5% before the bell on the news. Huntington shares were last down 3.6%. "This partnership will extend the reach of our full franchise to 21 states – stretching from the Midwest to the South to Texas – and into new, high-growth markets for which we have a powerful playbook," Huntington CEO Steve Steinour said. Huntington said it will issue 2.475 shares for each outstanding share of Cadence common stock. Earlier this month, rival Fifth Third agreed to buy regional lender Comerica in the year's largest bank deal so far, valued at $10.9 billion. The Wall Street Journal was the first to report the deal, which is expected to close in the first quarter of 2026. Evercore and BofA Securities served as financial advisors to Huntington, while Keefe, Bruyette & Woods advised Cadence on the deal. (Reporting by Manya Saini in Bengaluru; Editing by Sriraj Kalluvila and Krishna Chandra Eluri)
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