PNC To Acquire BBVA USA Bancshares For $11.6 Bln; 21% Accretive To Earnings In 2022

(RTTNews) - The PNC Financial Services Group, Inc. (PNC) has agreed to acquire BBVA USA Bancshares, Inc., including its U.S. banking subsidiary, BBVA USA, for a purchase price of $11.6 billion. Headquartered in Houston, Texas, BBVA USA Bancshares provides commercial and retail banking services through its banking subsidiary BBVA USA and operates 637 branches in Texas, Alabama, Arizona, California, Florida, Colorado and New Mexico. The acquisition adds approximately $86 billion of deposits and $66 billion of loans.

PNC expects the transaction to be approximately 21% accretive to earnings in 2022. The company anticipates to incur merger and integration costs of $980 million, inclusive of approximately $250 million in write-offs of capitalized items, and achieve cost savings in excess of $900 million.