Upon closing of the deal, PNC will become the fifth-largest commercial bank in the US with more than $560bn in assets

National_Bank_of_Washington_301_7th_Street,_NW_in_Washington,_D.C

A PNC Bank branch, located at 301 7th Street, N.W. in the Penn Quarter neighborhood of Washington, D.C. (Credit: AgnosticPreachersKid/Wikipedia)

The PNC Financial Services Group has secured approval from the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency to close the acquisition of the US operations of Spanish lender BBVA.

PNC stated that the regulatory approval process also included approvals from the Banking Departments of the states of Alabama and Texas and added no further regulatory approvals are required to complete the acquisition and merger of PNC Bank and BBVA USA.

In November last year, PNC Financial agreed to acquire BBVA USA Bancshares, including its US banking subsidiary, BBVA USA, for $11.6bn.

BBVA USA offers commercial and retail banking services and has 649 branches across Texas, Alabama, California, Arizona, Colorado, Florida, and New Mexico.

Once the deal is closed, PNC will become the fifth-largest commercial bank in the US with more than $560bn in assets and a presence in 29 of the 30 largest markets in the country.

PNC chairman, president and CEO William Demchak said: “We are pleased to have received regulatory approval of our acquisition that will accelerate our growth trajectory and drive long-term shareholder value.

“With common cultures and values and a shared commitment to our customers, employees and communities, we look forward to bringing PNC’s industry-leading technology and innovative products and services to new markets and clients.”

Subject to the satisfaction of customary closing conditions, the deal is expected to close on 1 June 2021.

Upon closing of the transaction, PNC will provide customers of BBVA USA detailed information regarding the anticipated conversion of their accounts in October this year.

PNC stated that customers will continue to be served through their respective BBVA USA and PNC branches, website and mobile application until conversion.

PNC offers a full range of lending products; specialised services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management.