WASHINGTON The Federal Reserve on Wednesday said it had approved Merchants Bancshares Inc MBVT.O to be acquired by Community Bank System (CBU.N) after deciding the tie-up would not harm competition.
Merchants Bancshares operates Merchants Bank of South Burlington, Vermont, and the deal will allow Community Bank System, of upstate New York, to better compete with national lenders, the central bank said in its decision.
The deal does not threaten the stability of the financial system, the Fed said in its order.
The deal will create the 122nd largest insured bank in the United States with assets of roughly $10.7 billion, less than 1 percent of the total in the system.
(Reporting By Patrick Rucker)