M&T; Bank to Buy Allied Irish’s U.S. Unit

M&T; Bank Corp., whose largest shareholder is Warren Buffett’s Berkshire Hathaway Inc., agreed to pay $3.1 billion for Allied Irish Banks’ 262-branch unit in the U.S.

The stock and cash transaction would follow $691 million in currency losses at the Allfirst Financial Inc. subsidiary this year. The sale would help Ireland’s largest bank distance itself from a trading scandal that led to the losses discovered in February and would enable M&T; to expand its commercial lending business in the eastern U.S.

The deal would create the 18th-largest U.S. bank with assets of $49 billion and 713 branches in six states.

Allied Irish shares rose $1.50, or 6.6%, to $24.20 on the NYSE. M&T; shares rose $5.43, or 7.3%, to $80.11, also on the NYSE.