PITTSBURGH–PNC Financial Services has announced plans to acquire the U.S. business of the Spanish lender BBVA for $11.6 billion.
If successful, the deal, one of the largest of its kind since the 2008 financial crisis, would create the nation’s fifth-largest retail lender, with more than $550 billion of assets. Houston-based BBVA USA Bancshares has approximately $86 billion in deposits and $66 billion in loans.
PNC has been using acquisitions to grow its U.S. footprint. It earlier expanded into the Southeast by paying $3.45 billion for the U.S. retail business of Royal Bank of Canada.
Expansion Into New States
With its acquisition of BBVA’s business, PNC will expand into Arizona, California, Colorado, New Mexico and Texas, giving it a presence in 29 of the country’s 30 biggest markets.
“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 chief executive, said in a statement.
PNC serves approximately eight million consumers and small businesses.