In what would be the latest tie-up of regional banks, US Bancorp in Minneapolis is acquiring MUFG Union Bank in San Francisco for US$8 billion in cash and stock, reported The Wall Street Journal.
The deal, announced early Tuesday, September 21, would add roughly US$58 billion of loans and US$90 billion of deposits to US Bancorp’s balance sheet, significantly boosting the bank’s market share in California. The US$547.8 billion-asset parent of US Bank has the No. 10 deposit share in the nation’s largest state and would move to the No. 5 position when its deal for MUFG Union Bank is completed in the first half of 2022.
“The acquisition of MUFG Union Bank underscores our commitment to strengthen and grow our business on the West Coast , make investments to serve customers and local communities and enhance competition in the financial services industry. With MUFG Union Bank , we will increase access to state-of-the-art financial products while maintainingthe US Bank’s strong track record of putting its customers and communities first,” Andy Cecere, US Bancorp’s chairman, president and chief executive officer, said in a news release Tuesday.
“Union Bank is the right deal at the right time for the right price,” US Bank Chief Executive Andy Cecere said on a call with analysts Tuesday morning.
US Bank late last year agreed to buy MUFG’s debt-service and securities custody portfolio, but until now had remained on the sidelines as regional-bank deals picked up steam. Most of the roughly 300 branches the Minneapolis-based bank will pick up from MUFG are in California, Washington, and Oregon.
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