The companies have reached an agreement to this effect in August 2012.
The merger, which is yet to receive the New York State Department of Financial Services and the satisfaction of customary closing conditions, is expected to be completed by 1 November.
Upon completion, the deal is expected to create a 14th biggest bank in the US, with combined assets of about $132bn.
The deal was not being allowed to advance as Fed was reviewing M&T’s anti-money-laundering controls, as reported in Bloomberg.
According to Financial Times, Hudson City’s recent settlement with another government agency over discriminatory lending practices also paved way for the regulatory approval.
Hudson City chairman and CEO Denis J. Salamone said: "In 2012, Hudson City developed a strategic plan to transform into a community commercial bank. When M&T approached us about a potential merger, we quickly realized that they had the business model we aspired to and that M&T could deploy it much more quickly for the benefit of our customers and the community.
"We also found their integrity and care for their customers was very similar to Hudson City’s values and culture. We believed it then and feel as strongly about it now."
Hudson City’s branches will continue to operate under the Hudson City name, as a division of M&T Bank, until they are converted to M&T’s network, which is expected to take place in the first quarter of 2016.
It operates 135 branches across New Jersey, downstate New York and Fairfield County, Connecticut.
Image: M&T Bank Headquarters in Buffalo, New York. Photo: courtesy of Fortunate4now / Wikipedia.
