PNC Bank Buying BBVA USA Bancshares for $11.6 Billion

HOUSTON – (Realty News Report) – Houston-based BBVA USA Bancshares is being sold to PNC Financial Services Group, a $11.6 billion transaction that will create one of the largest banks in the nation.

BBVA USA and operates 637 branches in Texas, Alabama, Arizona, California, Florida, Colorado and New Mexico. When combined with PNC’s existing footprint, the company will have a coast-to-coast franchise with a presence in 29 of the 30 largest markets in the U.S.

BBVA is the major tenant in a key building in Uptown Houston – a 22-story, 326,200-square-foot BBVA building at 2200 Post Oak Blvd, just a couple of blocks north of the Galleria mall.

The BBVA USA Bancshares, part of a Spanish financial institution, has $104 billion in assets.

PNC Bank recently announced a plan to expand with bank branches the in the Houston area. Pittsburgh-based PNC also leased 59,000-SF in New Braunfels for a banking center with 500 employees.

Houston’s soccer stadium on the east side of downtown is named BBVA Stadium.

“Our acquisition of BBVA USA will accelerate our growth trajectory and drive long-term shareholder value through a strategic deployment of the proceeds from the sale of our BlackRock investment,” said William S. Demchak, PNC’s chairman, president and chief executive officer. “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. 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.”

“This is a very positive transaction for all sides. 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,” said BBVA Group Executive Chairman Carlos Torres Vila. “The deal enhances our already strong financial position. We will have ample flexibility to profitably deploy capital in our markets strengthening our long-term growth profile and supporting economies in the recovery phase, and to increase distributions to shareholders.”

The transaction, which has been approved by both companies’ boards of directors, is expected to close in mid-2021, subject to customary closing conditions, including regulatory approvals. Upon closing, PNC intends to merge BBVA USABancshares into PNC with PNC continuing as the surviving entity. Post-closing, PNC intends to merge BBVA USA into PNC Bank, N.A. and convert BBVA USA customers to the PNC platform with BBVA USA branches assuming the PNC Bank name. PNC is not acquiring BBVA Securities, Inc., Propel Venture Partners Fund I, L.P. and BBVA Processing Services, Inc.

The Wall Street Journal reported the combined banks will have about  $560 billion in assets, ranking it as the seventh largest American bank, behind JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs, and Morgan Stanley.

Nov. 16, 2020 Realty News Report Copyright 2020

File: PNC Bank Buying BBVA

File: BBVA Stadium, JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs, PNC Bank Buying BBVA 11-16-20

Caption: The BBVA building near Houston’s Galleria sold in 2015 for $527 pr SF.

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