Done Deal For Commonwealth National
CNB Financial, the parent company of Worcester-based Commonwealth National Bank, has signed an agreement and plan of merger with West Springfield-based United Financial Bancorp in a deal valued at $25 million.
United Financial now appears to be the winner of a competition for Commonwealth National. The Worcester bank had initially signed an agreement to be acquired by Berkshire Hills Bank of Pittsfield. Then, United Financial came in with a counter offer, creating a bidding war. There was also a reported third bank with interest in acquiring Commonwealth National.
Under terms of the agreement with United Financial, CNB Financial shareholders have one of three options in the deal:
• $10.75 per share in cash for each of their shares
• 0.8257 United Financial shares for each CNB Financial share
• A combination of United Financial common stock and cash, provided the total cash consideration paid by United Financial to CNB shareholders equals 50 percent of the deal’s total value.
CNB Financial and Berkshire Hills have terminated their previously executed merger agreement. Berkshire will receive a $970,000 termination fee. The United deal is expected to close in the fourth quarter.
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