BMO plans to buy 2 U.S. banks for $343M

Canada's fourth biggest bank, Bank of Montreal, announced Tuesday it intends to purchase two Wisconsin-based banks, in a move to expand its Harris Bank retail unit.

Specifically, the transactions are to buy Ozaukee Bank in a stock deal worth $199 million, and bank holding company Merchants and Manufacturers Bancorporation Inc. for $144 million in cash.

BMO said two financial institutions together have about 40 full-service locations and 13 limited-service locations with more than $2 billion U.S. in assets and $1.7 U.S. billion in deposits.

"Today's announcements will move us further toward our goal of becoming the leading personal and commercial bank in the U.S. Midwest," said Bill Downe, CEO of BMO Financial Group.

Bought by BMO in 1985, Harris NA is the second-largest bank in the Chicago market, based on the number of branches. Including a recent acquisition in central Indiana, Harris has more than 230 locations and over 580 Harris-branded ABMs in Illinois and Indiana.

BMO said in a release that, "The Wisconsin acquisitions move Harris closer to its goal of 350 to 400 locations across the Midwest."

The deals are expected to close later this year. Both require approval from U.S. and Canadian regulators, as well as shareholders of the respective companies.

BMO shares finished Tuesday down 27 cents at $69.10 on the TSX.