PNC Financial Services is on its way to being one of the largest banks in the United States after Spanish financial giant BBVA agreed to sell its U.S. unit to the Pittsburgh-based lender for $11.6 billion.
PNC Financial Services is on its way to being one of the largest banks in the United States after Spanish financial giant BBVA agreed to sell its U.S. unit to the Pittsburgh-based lender for $11.6 billion (9.7 billion euros), the two companies announced on Monday.
The all-cash agreement would be the second-largest banking sector merger since the global financial crisis in 2008, following the $66 billion acquisition deal in February 2019 between BB&T and SunTrust to create Truist.
The deal would make PNC acquire more than $650 billion in assets, helping it create the fifth-biggest retail bank in the U.S. behind JPMorgan, Bank of America, Wells Fargo, and Citigroup.
BBVA’s Houston-based subsidiary, BBVA USA Bancshares, has $104 billion in assets and operates 637 branches in Texas, Alabama, Arizona, California, Florida, Colorado and New Mexico.
“This is a very positive transaction for all sides,” said BBVA Group Executive Chairman Carlos Torres Vila. “The deal enhances our already strong financial position. We will have ample flexibility to profitably deploy capital in our markets, strengthening our long-term growth profile and supporting economies in the recovery phase.”
The transaction is expected to close in the middle of 2021 pending regulatory approval.
As part of its national expansion strategy, this move would help the American banking giant leave its presence in 29 of the 30 largest markets across the entire country.
“Our acquisition will accelerate our growth trajectory and drive long-term shareholder value,” PNC CEO Willian Demchak said in a statement.
“This transaction is an opportunity to navigate our future from a position of strength, accelerating PNC’s expansion while drawing on our experience as a disciplined acquirer,” he added.