Wilmington Trust said on Monday that it was set for a merger with lending major M&T Bank Corp. , together forming a big-ticket lender in eastern US.

Wilmington Trust was founded by the du Ponts and in the face of a sixth straight quarterly loss it declared itself for sale. The final deal was made for around $351 million worth of stock, which is not a major chunk of the market value of Wilmington Trust.

The merger would mean the formation of a global provider in the arena of wealth management. Wilmington Trust was buckling under loans, and sought takeover bids from Bank of Montreal, Buffalo-based M&T Bank and Toronto-Dominion Bank , said the bankers of Wilmington Trust at Lazard Ltd.

CEO of the erstwhile undermined back Donald Foley said that this was the most prudent route for the 107-year-old Wilmington Trust, and the step was taken keeping in mind the interests of shareholders, clients and employees.

The deal will value one share of Wilmington at $3.84, which is about half of the price shares had at the end of October.

Toxic assets and various real estate investments and loans pulled down Wilmington Trust and its successive quarterly losses had reached staggering proportions.

The merger will have many combined strengths, and the acquisition will further empower and add to the stability of the M&T franchise. CEO of M&T Bank Corp. Robert Wilmers said that the move would also ensure top-of-class products for customers and increase stability.

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