PNC buys US operations from Spanish financial institution BBVA
Angel Navarrete | Bloomberg | Getty Images
The Spanish financial group BBVA has agreed to sell its US business BBVA USA Bancshares for 11.6 billion US dollars to the PNC Financial Services Group, the American company announced on Monday.
BBVA USA Bancshares is headquartered in Houston, Texas and has $ 104 billion under management. The banking subsidiary BBVA USA operates 637 branches in Texas, Alabama, Arizona, California, Florida, Colorado and New Mexico. The new company will have coast-to-coast presence in 29 of the US’s 30 largest markets, PNC said on Monday.
In a statement, BBVA Group’s CEO Carlos Torres Vila said the deal was “a very positive transaction for all parties” and strengthens the Spanish group’s “already strong financial position”.
“We will have ample flexibility to capitalize on capital in our markets, strengthen our long-term growth profile, and support recovering economies and increase dividends to shareholders,” added Torres Vila.
Once approved by the boards of both companies, the deal is expected to close in mid-2021. PNC as the surviving company takes over BBVA USA Bancshares and BBVA USA merges with PNC Bank.
“Our acquisition of BBVA USA will accelerate our growth trajectory and add long-term shareholder value by strategically using the proceeds from the sale of our BlackRock investment,” said William S. Demchak, PNC chairman, president and CEO.
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