BNP Paribas to Sell Its Bank of the West for $16.3 Billion

BNP Paribas, the European Union's leading bank and key player in international banking, announced that it has reached an agreement with BMO Financial Group for the sale of its subsidiary Bank of the West, Inc.

According to the press release, the sale is a cash transaction with a total consideration of 16.3 billion US dollars. The transaction is expected to formally close during the course of 2022, upon customary condition precedents, including the approval of the relevant antitrust and regulatory authorities.

“This is a value accretive transaction for all sides, which emphasizes the quality of Bank of the West franchise. In the name of BNP Paribas, I would like to deeply thank all Bank of the West teams for their achievements and contributions for the development of the Bank,”Jean-Laurent Bonnafé, BNP Paribas Group Director and Chief Executive Officer said.

“Moreover, BNP Paribas’ set-up in the United States remains a strategic pillar for the development of our Corporate and Institutional franchise. With this transaction, BNP Paribas also reaffirms its commitment to deliver value to all its stakeholders,”Bonnafé added.

The bank further highlighted that the transaction has no significant impact on its prime brokerage activities and it will continue to consolidate and further develop its activities in the United States, as a strategic pillar to better serve global clients' needs.

Earlier this year, BNP Paribas has been licensed to provide custody services for China’s Qualified Foreign Investor (QFI) scheme​. The license allow the bank to work directly with foreign institutional investors to facilitate their access to China’s equities and bond markets and provide foreign exchange services.