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What: Shares of Firstmerit Corp. (NASDAQ:FMER) have jumped as much as 22% in early trading Tuesday after it agreed to be bought out by Huntington Bancshares Incorporated (NASDAQ:HBAN), which has fallen 10%.

So what: The merger between the two banks will create the largest bank in Ohio with nearly $100 billion in assets. Huntington will pay 1.72 shares of its own stock and $5.00 in cash for each share of Firstmerit stock.  

The deal is expected to close in the third quarter and be approximately 10% accretive to earnings per share by 2018, the first full year after synergies are implemented.

Now what: Given the stock portion of this deal, it's natural that the two stocks will now trade in a related fashion. Firstmerit's pop shouldn't be a surprise because the deal is worth $18.67 per share with Huntington's shares currently trading at $7.95. But Huntington's drop is an indication that the market doesn't think the synergies both banks see as possible in a merger will play out as planned, which only time will tell.

Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.