PNC Financial Services has negotiated to acquire the US business of Spanish lender BBVA worth more than $ 11 billion, a person briefed on the matter.
The sale, which can be announced as soon as possible on Monday, will be one of the biggest banking deals since the 2008 financial crisis. It will create the country’s fifth-largest retail bank with more than $ 550 billion in assets, said the person, who spoke on condition of anonymity because the discussion was confidential. The person warned that the deal is not yet completed and it may still fall.
For PNC, this would be the latest in a string of acquisitions used to develop its national footprint. It expanded its foothold in 2011 with Royal Bank of Canada’s $ 3.45 billion acquisition of US Retail Banking and in 2008 bought National City Bank in Cleveland. With the acquisition of BBVA’s business, PNC will expand to Arizona, California. , Colorado New Mexico and Texas.
PNC, which is based in Pittsburgh and has a market capitalization of about $ 50 billion, serves approximately eight million consumers and small businesses. It has branches and ATMs in the Mid-Atlantic, Midwest and Southeast.
This year it sold for around $ 17 billion to Blackrock, the world’s largest asset manager, and accumulated more cash to carry out the deal. PNC Chief Executive, William S. Demchak has clarified that he will use that capital to buy regional rivals, who can compete against larger rivals who have the money to invest in technology and investment.
In September, Mr. Demcheck said, “We know that technical spending has to increase.” “And we know that the cost of credit will increase. And whether or not they put anyone at risk, all this suggests that a bank that does not have fee-based products is really going to struggle. “
“We get a lot of opportunity to deploy this capital,” he said.
The deal is a part of consolidation within the financial services industry. First Citizens Bancshares said in October that it planned to buy CIT Group for about $ 2.2 billion, while BB&T and Suntrust announced plans to tie up in a deal last year that valued the new lender at 66 Was billion dollars.
The Wall Street Journal first reported the talks on Sunday.