PNC Bank Signs Agreement with BBVA to Acquire BBVA USA Bancshares

The PNC Financial Services Group, one of the largest diversified financial services institutions in the United States, announced that it has signed a definitive agreement with the Spanish financial group BBVA to acquire BBVA USA Bancshares, Inc. in a cash deal worth $11.6 billion.

According to the official announcement, PNC expects the transaction to be approximately 21% accretive to earnings in 2022 and to substantially replace the net income benefit from PNC's passive equity investment in BlackRock that was divested in May 2020.

Approved by both companies' boards of directors, the transaction is expected to close in mid-2021, subject to customary closing conditions, including regulatory approvals.

Commenting on the deal, Carlos Torres Vila, BBVA Group Executive Chairman, said: “This is a very positive transaction for all sides. PNC has recognized the great value of our unique client franchise and of our great team in the U.S., who will be part of a leading financial services group in the country. The deal enhances our already strong financial position. We will have ample flexibility to profitably deploy capital in our markets strengthening our long-term growth profile and supporting economies in the recovery phase, and to increase distributions to shareholders.”

“Our acquisition of BBVA USA will accelerate our growth trajectory and drive long-term shareholder value through the strategic deployment of the proceeds from the sale of our BlackRock investment. This transaction is an opportunity to navigate our future from a position of strength, accelerating PNC’s national expansion strategy while drawing on our experience as a disciplined acquirer,” William S. Demchak, PNC’s Chairman and CEO, said in a statement.

The deal is the second-largest US banking acquisition since 2008.