Synovus weighs potential merger after drawing takeover interest

Adobe Stock

Synovus Financial Corp., a regional bank in the southeastern US, is weighing options including a potential merger after drawing interest, people familiar with the matter said.

The Columbus, Georgia-based bank is working with a financial adviser and has recently held merger talks with at least one rival, according to the people, who asked not to be identified because the details aren't public.

Shares in Synovus rose as much as 10% on Tuesday. The stock was up 6.4% at 2:27 p.m. in New York, giving the company a market value of about $8.2 billion.

Deliberations are ongoing and there's no certainty that Synovus will decide to pursue a transaction, the people said. A representative for Synovus didn't respond to requests for comment.

Regional US banks are under pressure to combine amid stiff competition from industry giants such as Bank of America Corp. and JPMorgan Chase & Co., which can afford to spend heavily on new branches and technology upgrades. Synovus has about $61 billion in assets and 244 branches in five southern states, according to its website.

Analysts and investors have been predicting that a long-forecast wave of bank mergers is poised to begin as regulators under the administration of US President Donald Trump take a more favorable view of consolidation. This month, Huntington Bancshares Inc. struck a $1.9 billion deal for Veritex Holdings Inc. in Texas.