PNC is based in Pittsburgh, and BBVA USA, a subsidiary of Spain’s BBVA, is based in Birmingham with a major presence in Houston.
“This is a very positive transaction for all sides,” said BBVA Group Executive Chairman Carlos Torres Vila. “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.”
After the purchase closes, which is expected to be in mid-2021, PNC will become the country’s 5th-largest bank by assets, according to a press release from BBVA, which also noted the deal excludes broker dealer BBVA Securities and BBVA’s branch in New York.
The BBVA deal – which will expand PNC’s footprint in the South and Southwest – will give PNC a presence in 29 of the country’s 30 largest markets, according to Bloomberg.
“This transaction is an opportunity to navigate our future from a position of strength, accelerating PNC’s expansion while drawing on our experience as a disciplined acquirer,” said William S. Demchak, PNC’s chairman, in a prepared statement. “We are excited to bring our industry-leading technology and innovative products and services to new markets and clients, leveraging our mutual commitment to building diverse and high-performing teams and supporting the communities we serve.”
BBVA bought Birmingham’s Compass Bancshares in 2007. BBVA Compass became BBVA USA in 2019. BBVA USA is the second largest Alabama-based bank by assets, following Regions Financial.
The transaction, which has been approved by both companies’ boards of directors, is subject to customary closing conditions, including regulatory approval.