PNC - PNC to Acquire U.S. Division of Spanish Bank Creating Fifth Largest American Bank
PNC Financial Services (NYSE: PNC) has agreed to acquire the U.S. banking arm of the Spanish lender Banco Bilbao Vizcaya Argentaria SA ( NYSE: BBVA) in an all-cash deal valued at $11.6 billion, the company announced Monday.
The deal will create the fifth largest bank in the U.S. with more than $560 billion in assets and a presence in 29 of the top 30 metropolitan statistical areas.
The purchase price values BBVA's U.S. banking franchise at 134% tangible book value, and is expected to be 21% accretive to PNC's earnings by 2022. PNC believes it can cut 35% of BBVA's U.S. expense base by 2022.
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PNC to Acquire U.S. Division of Spanish Bank, Creating Fifth Largest American Bank