PNC signs $ 11 billion deal to buy US operations of Spanish bank BBVA

PNC Financial Services is in talks to acquire the US business of Spanish lender BBVA worth more than $ 11 billion, a person briefed on the matter.

The sale, which can be announced as soon as possible on Monday, will be one of the biggest banking deals since the 2008 financial crisis. It will build the country’s fifth-largest retail bank with assets of more than $ 550 million, said the man, who spoke on condition of anonymity because the discussion was confidential. The person warned that the deal was not yet completed and it could still fall.

For PNC, it will be the latest in a string of acquisitions that it has used to grow its national footprint. It expanded its foothills with a $ 3.45 billion takeover in the southeast Royal Bank of Canada US Retail Banking In 2011, and in 2008 bought National City Bank based in Cleveland. With the acquisition of BBVA’s business, PNC will expand to Arizona, California, Colorado, New Mexico and Texas.

PNC, which is based in Pittsburgh and has a market capitalization of about $ 50 billion, serves approximately eight million consumers and small businesses. It has branches and ATMs in the Mid-Atlantic, Midwest and Southeast.

It sold for about $ 17 billion this year to Blackrock, the world’s largest asset manager Free up more cash to make another deal. PNC Chief Executive, William S. Demchak has clarified that he will use that capital to buy regional rivals who will invest money in technology and investment to compete against larger rivals.

In September, Mr. Demcheck said, “We know that technical expenses have to be increased.” “And we know that the cost of credit will increase. And whether or not they put anyone at risk, all this suggests that a bank that does not have fee-based products is really going to struggle. “

“We get a lot of opportunity to deploy this capital,” he said.

The deal is a part of consolidation within the financial services industry. First Citizen Bancher Said in october That it planned to buy CIT Group for about $ 2.2 billion, while BB&T and SunTrust Plans announced Last year to combine in an agreement that valued the new lender at $ 66 billion.

The Wall Street Journal first reported the talks on Sunday.

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