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
This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation or the particular needs of any recipient.
You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.
This information may not be published, circulated, reproduced or distributed in whole or in part to any other person without the Company’s prior written consent. Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of za.capex.com
JME Financial Services (Pty) Ltd trading as ZA.CAPEX.COM acts as intermediary between the investor and Magnasale Trading Ltd, the counterparty to the contract for difference purchased by the Investor via ZA.CAPEX.COM, authorised & regulated by the Cyprus Securities and Exchange Commission with license number 264/15. Magnasale Trading Ltd is the principal to the CFD purchased by investors.