The financial services company PNC, one of the largest of United States, is in advanced talks to acquire the US division of the Spanish bank BBVA, which would be one of the largest unions of banking entities since the financial crisis of 2008, reported this Sunday the Wall Street Journal.
The transaction, which could reach a value of 10 billion dollars, would lead to the creation of the fifth largest commercial bank in the US, with more than 550,000 million dollars in assets and branches that cover the entire eastern half of the country. country.
BBVA, which in 2007 bought the company based on Alabama Compass Bancshares, It has more than 600 branches and assets of about $ 100 billion in the US.
According to the information obtained by the Wall Street Journal, which did not specify its source, the companies are specifying the details of the agreement, which could be announced this Monday, November 16.
PNC, which has a market value of about 50,000 million dollars, increased its funding funds this year when it sold its stakes in the investment company BlackRock for 15,000 million dollars.
The purchase of BBVA in the US would help PNC, based in Pittsburgh, to expand its commercial and corporate banking business, while the closure of branches in the southeastern part of the country, where entities have an overlapping network of offices, could lead to a reduction in costs, points out the New York newspaper.
News of the potential deal comes two months after PNC’s executive director, William Demchak, assured last September that the bank’s national presence would be the “first, second and third objective” of any agreement.
The acquisitions of large banks have been scarce since the 2008 crisis, with few actors willing to put the country’s political climate to the test, who have also been wary of the application of new regulations on large banks.
To this is added that the old motivation to add branches has less weight today given that many of the banking activities now take place on the Internet and customers have less ties with the physical offices of the banks.
However, regional entities have been pressured by the benefits that large national banks have been recording such as JP Morgan Chase o Bank of America, They have been attracting customers with new mobile applications and extensive branch networks.
The agreement would mean the US withdrawal from BBVA, the second largest bank in Spain and with a important presence in Latin America.
In 2007, BBVA bought Compass for 10 billion dollars to consolidate its presence in the US, but since then it has lowered the value of its business on two occasions and this year it warned of another possible decline due to the significant hit of the coronavirus on the country’s economy.
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