Banking

PNC to buy U.S. operations of Spanish bank BBVA for $11.6 billion

Angel Navarrete | Bloomberg | Getty Images

Spanish financial group BBVA has agreed to sell its U.S. business, BBVA USA Bancshares, to PNC Financial Services Group for $11.6 billion, the American firm announced Monday.

Headquartered in Houston, Texas, BBVA USA Bancshares has $104 billion in assets under management, with banking subsidiary BBVA USA operating 637 branches in Texas, Alabama, Arizona, California, Florida, Colorado and New Mexico. The new company will have a coast-to-coast presence in 29 of the 30 largest markets in the U.S., PNC said Monday.

In a statement, BBVA Group Executive Chairman Carlos Torres Vila said the deal was a “very positive transaction for all sides” and enhanced the Spanish group’s “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, and to increase distributions to shareholders,” Torres Vila added.

Having been approved by both companies’ boards, the deal is expected to close in mid-2021, with PNC as the surviving entity absorbing BBVA USA Bancshares and BBVA USA merging with PNC Bank.

“Our acquisition of BBVA USA will accelerate our growth trajectory and drive long-term shareholder value through a strategic deployment of the proceeds from the sale of our BlackRock investment,” said PNC Chairman, President and CEO William S. Demchak.

This is a breaking news story, please check back later for more.

 

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