The BBVA group announced the sale of its subsidiary in the United States to PNC for a price of approximately 11.6 billion dollars in cash, according to the Spanish institution.
The price of the operation represents 19.7 times the result obtained by the unit in 2019 and is equivalent to about 50 % of BBVA’s current stock market value, so the operation creates “enormous” value for shareholders.
The transaction, which is expected to close in mid-2021, once the necessary regulatory authorizations are obtained, will have a positive impact on BBVA’s CET1 ‘fully loaded’ capital ratio of around 300 basis points, equivalent to more than 8,000 million of CET1 generation dollars.
“This is a great operation for all parties. PNC has recognized the enormous value of our business, our clients and our great team in the United States, which will be part of a leading financial group in the country,” said the president of BBVA, Carlos Torres Vila.
In the United States, BBVA is present in the Sunbelt region, with more than $ 100 billion in assets, 637 offices and leadership positions in Texas, Alabama and Arizona.
Upon completion of the operation, PNC, based in Pittsburgh, Pennsylvania, will become the fifth-largest bank in the country in terms of assets.
K. Tovar
Source: Bancaynegocios
