PNC Acquiring U.S. Operations Of BBVA For $11.6 Billion

By Amit Chowdhry ● November 16, 2020
  • PNC Financial Services Group Inc (NYSE: PNC) is acquiring the U.S. operations of Spanish financial group Banco Bilbao Vizcaya Argentaria SA (NYSE: BBVA). These are the details.

PNC Financial Services Group Inc (NYSE: PNC) is acquiring the U.S. operations of Spanish financial group BBVA, which is called BBVA USA Bancshares. Based in Houston, Texas, BBVA USA Bancshares currently has about $104 billion in assets under management. 

And BBVA USA operates about 637 branches across Texas, Alabama, Arizona, California, Florida, Colorado and New Mexico. Going forward, the new company is going to have a presence across the country.

The all-cash deal has been approved by the boards of both companies. And the deal is expected to close in the middle of 2021.

KEY QUOTES:

“This is a very positive transaction for all sides. PNC has recognized the great value of our unique client franchise and of our great team in the U.S., who will be part of a leading financial services group in the country. The deal enhances our 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.”

— BBVA Group Executive Chairman Carlos Torres Vila

“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. This transaction is an opportunity to navigate our future from a position of strength, accelerating PNC’s national expansion strategy while drawing on our experience as a disciplined acquirer. We are excited to bring our industry-leading technology and innovative products and services to new markets and clients, leveraging our mutual commitment to building diverse and high performing teams and supporting the communities we serve.”

— William Demchak, PNC’s chairman, president and chief executive officer