PNC Financial Services Group Inc (NYSE:PNC) is in advanced discussions to absorb Spanish bank Banco Bilbao Vizcaya Argentaria SA’s (NYSE:BBVA) U.S. business in an all-cash deal, according to the Wall Street Journal.
What Happened: BBVA USA's operations hold approximately $100 billion in assets and the sale could raise proceeds of over $11 billion for the bank, the Journal noted. Further details about the deal are expected to be released on Monday.
Currently, BBVA U.S. has a presence in Alabama, Arizona, California, Colorado, Florida, New Mexico, and Texas.
The acquisition agreement would consolidate $500 billion assets into one financial institution, catapulting PNC to the fifth spot among retail banking giants in the U.S., as per the Journal.
The Journal speculated that PNC could fund the acquisition through the sales proceeds of its BlackRock Inc (NYSE:BLK) stake. PNC had shed 31.6 million Blackrock earlier this year in May for collective proceeds of $14.37 billion.
Why Does It Matter: The acquisition is in line with PNC CEO William Demchak’s objective of growing the company’s national presence. In June, Demchak said in a CNBC interview that PNC’s capital resources could be deployed to acquire another bank.
Price Action: PNC shares closed Friday at $122.78, 1.47% higher. Whereas, BBVA quoted 5.06% higher at $3.74.
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