BUFFALO,NY-- The top executives from KeyBank and First Niagara publicly unveiled details of their pending merger on Wednesday night in Larkinville, the site of KeyBank's future regional headquarters.
The $4 billion merger is still subject to federal approval, but both companies expect the sale to become official later this year.
The merger, which will make KeyBank the 13-largest bank in the country, has received stiff opposition from several Democratic lawmakers at the state and federal levels, including Gov. Andrew Cuomo, Senator Chuck Schumer and Congressman Brian Higgins, all citing the possibility of major job losses and a reduction in bank competition in Western New York.
Last month, in an agreement with the Department of Justice, KeyBank announced it would sell 18 branches to comply with anti-trust requirements.
In a statement, a spokesperson for Higgins told 2 On Your Side that "while that may satisfy one component of the agreement, we remain focused on the impact this merger could have on the local community and local jobs."
The CEOs of both companies also said that any talk of job losses would simply be "pure speculation."
"The one thing I lost sleep over was our employees, that's what kept me up at night, worrying about the employees. But as worried as I was about that, I feel so much better now as far though the process that we are, because of the approach KeyBank has taken," First Niagara CEO Gary Crosby said. "Very thoughtful approach."
Beth Mooney, the CEO of KeyBank, also said it was too early to tell what the impact would be on local jobs.
"Anybody who would have a view would be speculating and not stating fact... it's an answer we don't yet know," Mooney said.
Governor Andrew Cuomo officially requested in February that federal officials block the merger between Key Bank and First Niagara Bank on Wednesday. In a written statement, Cuomo said, “the proposed acquisition of First Niagara by Key Bank would have a devastating impact on consumers and businesses.”
Erie County Executive, Mark Poloncarz, and Congressman, Brian Higgins, also announced opposition to the merger of the two banks. Both politicians believe the purchase will decrease the amount of branches in the area, as well as cut more than 1,500 jobs.
Another detail to be announced later will be the renaming of the First Niagara Center. Pending approvals, it is expected to be re-named KeyBank Center in time for the 2016-17 Sabres season.