Old National Acquisition Clears Key Hurdle

Evansville-based Old National Bancorp (Nasdaq: ONB) says its planned acquisition of Anchor Bancorp Inc. in Minnesota has received federal regulatory approval. The deal, valued at more than $300 million, remains subject to approval from Anchor shareholders.

The proposed acquisition was first announced in August, at which point Old National said the deal had already received approval from the boards of directors for both companies. Per the agreement, Anchor shareholders will receive 1.35 shares of Old National common stock and $2.625 in cash for each share of Anchor common stock they own.

Anchor shareholders are expected to vote on the agreement October 30. Old National says, if all other closing conditions are met, the deal will officially close on November 1.

Anchor Bancorp’s subsidiary, Anchor Bank, currently has 18 branches in the area. If the deal is approved, Anchor Bank will merge with and into Old National Bank and will make Old National the seventh-largest deposit holder in the Twin Cities market.