PNC To Purchase BBVA USA In $11.6 Billion Deal

PITTSBURGH, PA — BBVA, formerly Compass bank based in Birmingham, has entered into an agreement with PNC Bank to be purchased for $11.6 billion, according to a release from PNC.

PNC, based in Pittsburgh, made the announcement Monday, and the deal is expected to close in mid 2021, pending regulatory approval and other customer closing conditions.

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 USA Bancshares 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.

"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."

BBVA USA moved its headquarters from Birmingham to Houston in 2019, and adopted the BBVA branding, taking the "Compass" brand from its name.

Compass Bank has a long history in Birmingham, having started as Central Bank in 1964. After D. Paul Jones took over the helm of the bank in 1991 from Harry Brock, Central Bank rebranded as Compass Bank.

In 2007, Spanish bank BBVA bought Compass, changing the name to BBVA Compass, keeping the bank's U.S. operations based in Birmingham.

"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 combined bank will have a presence in 29 of the 30 largest markets in the U.S. It will be the fifth largest bank in the U.S. based on total assets.