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PNC was set to close a deal to buy the US operations of Spanish bank BBVA for more than $ 11 billion in an all-cash deal, people briefed on the matter said.
A deal, which could be announced on Monday, would create the fifth-largest US retail bank in terms of assets, giving a boost to a fragmented industry that has been slow to consolidate.
The transaction would come six months after PNC sold its stake in BlackRock, the world’s largest asset manager, for $ 17 billion as it wanted to strengthen its balance sheet amid growing concerns about the future of the economy. America in the midst of the coronavirus crisis.
Acquiring BBVA’s US operations would give Pittsburgh-based PNC a presence in several key growth markets outside of its predominantly Midwestern and Mid-Atlantic footprint. BBVA has a strong presence in Texas, Arizona, California and Florida.
The deal would be the first major bank merger since BB&T bought SunTrust for $ 28 billion in February 2019, forming what is now Truist. PNC, which has around $ 450 billion in assets, would overtake Truist once the deal is struck with BBVA USA, which has more than $ 100 billion in assets.
It follows a trend of European banks to reduce their presence in the United States after struggling to compete with bigger and better capitalized rivals. Other European players who have reduced their activities in the United States include HSBC and Deutsche Bank. While most of the cuts are in investment banking, retail divisions have also been cut.
The Wall Street Journal reported earlier that PNC was in talks to acquire the US operations of BBVA.
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