US Bank Signs $ 8 Billion Agreement to Acquire MUFG’s Retail Banking Business
The US bank on Tuesday announced an $ 8 billion deal to buy the US retail operations of Japanese group Mitsubishi UFJ Financial Group (MUFG).
The takeover of MUFG Union Bank will allow the Minneapolis-based US bank to strengthen its activities on the US West Coast, particularly in California, the company said in a statement.
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With the deal, US Bank, the country’s fifth-largest bank in terms of assets, will add more than one million individual accounts and approximately 190,000 small businesses to the 305 branches of MUFG Union Bank, which are primarily located in California, to Washington and Oregon.
Under the terms of the deal, US Bank will pay $ 5.5 billion in cash and about 44 million shares. The transaction does not include MUFG’s US investment banking business and excludes certain other assets.
Kevin Cronin, head of the Americas region for the Japanese group, said the agreement “will allow MUFG to focus and increase our resources on accelerating the growth of our wholesale business in America,” including the bank business and investment.
The company acquired Union Bank in 2008. The boards of directors of both financial institutions have approved the deal and plan to close the sale in the first half of 2022. But it will still need the approval of regulators.
Other large foreign banks that have ventured into the US retail banking market have also headed for the exit.
The Spanish BBVA finalized in June the sale of its American unit PNC Financial Services and the British banking group HSBC announced in May that it wanted to get rid of its branch network.