NEW YORK (TheStreet) -- Huntington Bancshares (HBAN) - Get Report stock is down by 9.66% to $7.95 in early-morning trading on Tuesday, after the regional banking company announced it will acquire FirstMerit Corp. (FMER) in a deal valued at $3.4 billion. 

Shareholders of FirstMerit, a bank holding company based in Akron, OH, will receive 1.72 shares of Huntington common stock and $5 in cash for each share of FirstMerit Corporation that they own. 

The acquisition will increase Huntington's earnings by 10% in 2018, the company added.

The combined company will be the largest bank in Ohio based on deposit share, Huntington said in a statement. The deal expected to close in the 2016 third quarter.

FirstMerit stock is surging by 17.11% to $18 in early-morning trading on Tuesday. 

"We are very pleased to come together with FirstMerit to create a regional bank with added customer convenience, an enhanced portfolio of products for consumers and businesses, as well as strong market share," CEO Steve Steinour said in a statement. "I believe the strength of this deal is that both organizations already understand the needs and goals of our Midwestern customers and communities."

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Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "buy" with a ratings score of B. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full analysis from the report here: HBAN

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