PNC at a PNC Plaza in Pittsburgh, Pennsylvania. ATMs at the company headquarters for financial services.
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Spanish financial group BBV has agreed to sell its US business, BBV USA Bankshares, to PNC Financial Services Group for 11 11.6 billion, the American Pay Firm announced on Monday.
Headquartered in Houston, Texas, BBVA USA BankShares has 4,104 billion in assets, with banking subsidiary BBVA USA operating 63,637 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 U.S. markets, PNC said Monday.
According to Reuters, the all-cash deal is the second largest acquisition in the United States since the 2008 financial crisis, giving American businesses 19.7 times its 2019 earnings and 1.34 times its book value in September 2020. The price represents about 50. % Of BBVA’s current market capitalization.
In a statement, BBVA Group Acting Chairman Carlos Torres Villa said the deal was “a very positive deal for all parties” and the Spanish group’s “already strong financial position.”
Torres Villa added: “We will have enough leeway to improve our long-term growth profile and invest in our markets profitably to strengthen the supportive economy in the recovery phase and increase distribution to shareholders.”
After approval by the boards of both companies, the deal is expected to close in mid-2021, with BBVA USA Bankshares and BBVA USA PNC Bank merging as PNC surviving entities.
P.N.C. “Our acquisition of BBVA USA will accelerate long-term shareholder value through the strategic deployment of proceeds from the sale of our BlackRock investment,” said William S. Demchak, Chairman, President and CEO of.
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