Pnc-Midlantic Join In Latest Bank Merger

PNC Bank Corp. will acquire Midlantic Corp. in a $3 billion stock deal that underscores a surge in bank mergers and raises the pressure on competitors to nab partners in rich banking markets.

The merger announced Monday will give Pittsburgh-based PNC a major stake in New Jersey, where only three weeks ago a record $5.4 billion merger deal was proclaimed between the state’s largest bank, First Fidelity Bancorp., and Charlotte, N.C.-based First Union Corp.

Analysts said the PNC-Midlantic deal will spur more bank takeovers in New Jersey, one of the nation’s most affluent and populous states.

It also is likely to accelerate mergers across the East Coast, the Midwest and the Pacific Northwest, as companies rush to acquire regional banks that are the cream of the crop in their markets.