Mechanics Bank and Rabobank International (Rabo Parent) have received regulatory approval from the Board of Governors of the Federal Reserve, The Office of the Comptroller of Currency, The Federal Deposit Insurance Corporation and the California Department of Business Oversight for the pending acquisition of Rabobank — Rabobank’s California-based and primarily retail bank — by Mechanics.
No further regulatory approvals are required for Mechanics and Rabo Parent to consummate the acquisition and the other transactions contemplated by the March 15, 2019 stock purchase agreement by and between Mechanics and Rabo Parent.
The acquisition is expected to close on or about September 1, 2019, subject to the satisfaction of the remaining conditions set forth in the stock purchase agreement.
Mechanics also commenced a rights offering to its current shareholders. Pursuant to the rights offering, current shareholders will receive 1.10 subscription rights for each share of common stock owned as of 5:00 p.m., Pacific Time, on July 26, 2019, the record date of the rights offering. Each subscription right will entitle current shareholders to purchase one share of Mechanics common stock at the subscription price of $38,000 per share. Shareholders are not entitled to any over-subscription privilege. Funds received from subscribers in the rights offering will be held by the subscription agent until the rights offering is completed or canceled.
Established in 1905, Mechanics Bank is an independent, full-service community bank, based in Walnut Creek, CA.
