PNC secures its spot as the fifth-largest American bank by assets
The week seems to have started with a significant deal in the banking sector. PNC, a Pittsburg-based bank holding company, and financial services corporation, announced that it is securing its spot among the largest banks in America.
PNC announced that it is buying the American subsidiary of BBVA (Banco Bilbao Vizcaya Argentaria) for $11.6 billion. After the deal goes through, this will be the second-biggest merger in the banking sector after the $66 billion deal between BB&T and SunTrust to create Truist in 2009.
BBVA’s American subsidiary has over $100 billion in assets and more than 630 branches across the country. After the deal, PNC will have $560 billion in assets, becoming the fifth-largest bank after JPMorgan Chase, Bank of America, Wells Fargo, and Citigroup. The merger comes six months after PNC sold its $17 billion stake in BlackRock.
The deal is pending regulatory approval and is expected to close in mid-2021. PNC expects the acquisition to increase its 2022 earnings by 21%.
Following the news, BBVA stock price jumped more than 16%.
Sources: edition.cnn.com, reuters.com