How Interest Rates Altered a Merger's Price

Eastern Bankshares and Cambridge Bancorp cut their deal's exchange ratio days before finalizing the agreement. Here is the background for the $528M deal.

Hello, Bank Slaters!

By now, everyone here knows that I love reading regulatory filings. I am particularly interested in S-4 filings that shed light on the background of mergers. When I find something particularly interesting, I like to share my take with premium subscribers.

I noticed in the filing for Eastern Bankshares’ pending purchase of Cambridge Bancorp that the parties had to renegotiate the exchange ratio just days before finalizing the agreement.

Here’s a look at how the deal came to pass. Curious what you all think.