Spain's BBVA financial group agreed the sell of its US division to the United States' PNC group for 9.7 billion euros ($11.6 billion), the Spanish national stock market commission CNMV said on Monday
MOSCOW (Pakistan Point News / Sputnik - 16th November, 2020) Spain's BBVA financial group agreed the sell of its US division to the United States' PNC group for 9.7 billion euros ($11.6 billion), the Spanish national stock market commission CNMV said on Monday.
"BBVA has reached an agreement with the PNC Financial Services Group, Inc. for the sale of 100% of the capital stock of its subsidiary BBVA USA Bancshares, Inc., which in turn owns all the capital stock of the bank, BBVA USA, as well as other companies of the BBVA group in the United States," a statement by the CNMV said.
According to the BBVA statement, the agreed price represents 19.7 times the division's earning in 2019 which is equivalent to almost 50 percent of the bank's current market capitalization, creating considerable value for shareholders.
The deal is expected to be completed in mid 2021 once the necessary regulatory approvals have been obtained. After this, PNC is expected to become the fifth largest retail bank in the United States.
In the US, BBVA has more than $100 billion in assets, 637 offices and leading market shares in Alabama, Texas and Arizona.
