https://www.detroitnews.com/story/business/2020/12/13/tcf-merge-into-huntington-bank-have-dual-headquarters/6534986002/
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TCF [[Cobo) Center to be renamed Huntington Center after deal is complete. Commercial Business HQ to occupy new tower being constructed on Elizabeth Street. Holding Company HQ to remain in Columbus.
well this is... interesting.
with democrats in control though, not sure how likely this is to go through.
https://www.freep.com/story/money/personal-finance/susan-tompor/2020/12/13/huntington-and-tcf-financial-merge-228-billion-deal/6529409002/Quote:
"A Detroit headquarters will be used for the combined company's commercial banking arm. The bankers said 60% of business enterprise will be based in Detroit, while 40% of enterprise will be in Columbus.
“Detroit will be a co-headquarters with Columbus,” said Huntington's top executive Stephen D. Steinour.
At least 800 employees of the combined company, nearly three times the number TCF had planned, will be housed in the downtown structure, according to the plans. "
Hmm, so this is definitely good news. I gotta say I greatly admire Gary Torgow's love of this city. Maybe they could finance some big things in Detroit.
I agree, this sounds like good news. I believe the current regional headquarters for Huntington is in Troy. I wonder if those workers will be moved into the new building downtown instead of them leasing out the additional space as they are now.
Firms like to claim their pursuing a merger of equals and that there will be dual headquarters, etc. That seldom plays out long term. Huntington will be calling the shots and MI/Detroit will be on the losing side sooner or later.
Huntington Center is a helluva lot more aesthetic than TCF Center. Yeah, when I first heard this I was a bit worried, but as more details come out, it seems like as much of a win-win as it merger can be, anyway. From our end, you'd much rather TCF being the one proposing the takeover, but that's not in the cards.
Not even sure why the partisans were even mentioned, though. The Fed oversees bank mergers. Neither party is against regional bank mergers. We're not talking about some investment banks or some national bankers merging, we're talking about two regional commercial banks.
I am always wary of mergers... anyone remember the merger of New Center HQ based Burroughs Corp., and Blue Bell PA based Sperry Corp. The combined entity became UNISYS Corp... supposedly with co-HQ. But as we all know... the HQ ended up in Blue Bell PA.
However, from a purely banking perspective... Huntington is a great bank. They are superior to the banking I've had at Charter One, and especially Bank of America.
But unfortunately a great consumer banking experience doesn't translate into HQ consolidations.
Also, I like the name Huntington Center over TCF Center name. Sounds like it's named after someone rather than a corporate entity.
[[Ha! Just saw your post Dexlin... gotta agree with the name change... :))
Also like the name Huntington Tower... rising over Grand Circus Park and Woodward. TCF was only going to occupy the upper floors... now it looks like Huntington will take over all 10 upper floors [[above the parking floors).
Since when do mergers mean more jobs? If anything this is a heavily leaning in Detroit's favor. Also Torgow will be executive chairman. Pretty sure he'll be calling shots.Quote:
Originally Posted by DetroiterOnTheWestCoast
That's definitely not correct. The article clearly states that the current CEO of Huntington will hold the most titles, including President and CEO of the holding company + President and CEO of the combined bank. Torgow will be the chairman of the combined bank.
But none of this is surprising. Huntington is the bigger bank and holding company. I'm surprised Detroit is even getting as much of the operations as they are proposing we get given how much more dominant Huntington is. Like I said, this is the best of a bad situation, really. We should really just be happy that we're getting part of the headquarters at all. And, in fact, it sounds like we're getting most of the bank's business and half of the board meetings, which is surprising:
Quote:
Columbus will remain the headquarters for the holding company and the consumer bank, which will represent about 40% of the combined company's business.
Detroit will house the other 60% of the $117 billion in the merger's total loans. It will host every other board of directors meeting.
I would rather have it completely headquartered here, but Torgow has definitely showed his ability to get bought out by a larger bank and still come out at the winner in the situation. He did it when he merged with Chemical and again with TCF. Commercial banking being headquartered in Detroit might mean higher paying jobs and good access to capital for the area.
I thought TCF bank merge with Chemical Bank! [[ DOW Chemical) That is.
He's chairman of the board, Stephen might have a higher position but I doubt he can make any major decisions or changes without the approval of that board. So while not the absolute top position he'll definitely have huge sway in the combined company.Quote:
Originally Posted by Dexlin
This makes me wish even more that they just leased space in Monroe Block instead of building their own tower. They would have had so much more room.
Usually when 2 companies merge... the head of the smaller one usually gets some kind of compensation or a "golden parachute" in case they leave the merged company.
I remember in 1998 when Ameritech phone company was bought out by SBC [[which later bought out AT&T and ultimately used the AT&T name)... the chairman of Ameritech... Richard Notebart... got a high level #2 job with SBC... but shortly thereafter left the company... with a nice $40 million golden parachute.
So I am suspect about Torgow's motives... although this merger could work to Detroit's benefit. Although I am sure that there is a lot of incentive to do this by Torgow. :eek:
Torgow's kids also own the building so he has a big incentive to keep the company there.
Torgow has been pretty vocal about his ideas of keeping things in Detroit. Also he literally built up this bank from almost scratch via mergers in the last ten years. I don't see him just up and leaving for a fat check this is his life.
Watch out Chase Bank! TCF is coming to get you.
hmm. I wonder how many Detroit-proper locations Huntington plans to have.