Coronavirus concerns prompt Louisiana bank to terminate acquisition
Another bank merger has been terminated.
Investar Holding in Baton Rouge, La., disclosed in a regulatory filing Wednesday that it will terminate its agreement to buy Cheaha Financial Group in Oxford, Ala.
The decision “came in response to the unpredictable economic conditions resulting from the global health crisis caused by the COVID-19 pandemic,” the filing said. Those issues “made it impractical for Investar to complete the strategic transaction contemplated.”
Investar and Cheaha will not be required to pay any termination fees.
The $2.2 billion-asset Investar agreed to buy the $207 million-asset parent of Cheaha Bank in December for $41 million in cash.
It's the latest bank M&A deal to be canceled because of the coronavirus pandemic.
Other nixed deals included the proposed combination of Independent Bank and Texas Capital Bancshares and Ally Financial’s agreement to buy CardWorks.