Nov 25 (Reuters) - Regional lender Old National Bancorp ( ONB )

said on Monday it will buy privately held Bremer

Financial in a $1.40 billion cash-and-stock deal, creating a

combined bank with over $70 billion in assets.

Bremer shareholders will receive 4.182 shares of Old

National and $26.22 in cash, valuing the lender at $116.76 per

share.

Dealmaking between regional lenders has surged this year as

they seek scale to better compete against bigger rivals, and is

expected to get a further boost from President-elect Donald

Trump's lenient stance on capital rules and merger approvals.

The Bremer deal will bolster Old National's footprint in

Minnesota, North Dakota and Wisconsin.

Founded in 1943, Minnesota-based Bremer has $16.2 billion in

assets, while Indiana-based Old National has about $54 billion.

Bremer is majority owned by the Otto Bremer Trust, which

will own about 11% of Old National upon the deal close.

Citi and Squire Patton Boggs were the advisers to Old

National. J.P. Morgan and Wachtell, Lipton, Rosen & Katz advised

Bremer.

Keefe, Bruyette & Woods and Sullivan & Cromwell advised Otto

Bremer Trust.

Separately, Old National sold 19 million shares in a stock

offering at $21 each for $400 million.

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by

Krishna Chandra Eluri and Shinjini Ganguli)