An ATM is displayed at the PNC Financial Services Company headquarters at One PNC Plaza in Pittsburgh, Pennsylvania.
Spanish financial group BBVA has agreed to sell its US company, BBVA USA Bancshares, to PNC Financial Services Group for $ 11.6 billion, the US company announced on Monday.
Based in Houston, Texas, BBVA USA Bancshares has $ 104 billion in assets under management, with bank subsidiary BBVA USA operating 637 branches in Texas, Alabama, Arizona, California, Florida, and Colorado. Mexico. The new company will have a shore-to-shore presence in 29 of the 30 largest markets in the United States, PNC said Monday.
The all-cash deal is the second-largest US banking takeover since the 2008 financial crisis, according to Reuters, and puts the US company at 19.7 times its earnings since 2019 and 1.34 times its accounting. value from September 2020. The price represents almost 50% of the current capitalization of BBVA.
In a statement, BBVA Group CEO Carlos Torres Vila said the deal was a “very positive deal for all parties” and strengthened the Spanish group’s “already strong financial position”.
“We will have great flexibility to grow profitable capital in our markets by strengthening the long-term growth profile and supporting economies in the recovery phase, and to increase distributions to shareholders,” Torres Vila added.
Approved by the boards of both companies, the deal is expected to be completed by mid-2021, with PNC as the surviving entity absorbing BBVA USA Bancshares and BBVA USA merging with PNC Bank.
“Our acquisition by BBVA USA will accelerate growth and drive long-term shareholder value through a revenue growth strategy from the sale of our BlackRock investment,” said William S. Demchak, President and Chairman of PNC.