{"id":381315,"date":"2020-11-16T01:17:40","date_gmt":"2020-11-16T06:17:40","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=381315"},"modified":"2020-11-16T01:17:40","modified_gmt":"2020-11-16T06:17:40","slug":"bbva-sells-u-s-subsidiary-to-pnc-for-11-6-billion","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/bbva-sells-u-s-subsidiary-to-pnc-for-11-6-billion\/","title":{"rendered":"BBVA sells U.S. subsidiary to PNC for $11.6 billion"},"content":{"rendered":"<div class=\"xn-newslines\">\n<p class=\"xn-distributor\">PR Newswire<\/p>\n<\/p><\/div>\n<div class=\"xn-content\">\n<p>\n        <span class=\"xn-location\">MADRID<\/span>, <span class=\"xn-chron\">Nov. 16, 2020<\/span> \/PRNewswire\/ &#8212;\u00a0<b>BBVA has agreed to sell to PNC its subsidiary in the U.S. for <span class=\"xn-money\">$11.6 billion<\/span> (\u20ac9.7 billion<sup>1<\/sup>) in cash, an amount that represents 19.7 times the unit&#8217;s 2019 earnings<sup>2<\/sup>, and that is almost 50% of BBVA&#8217;s current market capitalization, creating significant value for shareholders. The transaction will have a positive impact on BBVA&#8217;s fully loaded CET1 ratio of c.300 basis points, or \u20ac8.5 billion of CET1 generation. <\/b><\/p>\n<div class=\"PRN_ImbeddedAssetReference\" id=\"DivAssetPlaceHolder1\">\n<p>\n          <a href=\"https:\/\/mma.prnewswire.com\/media\/876186\/New_BBVA_Logo.html\" target=\"_blank\" rel=\"nofollow noopener noreferrer\"><br \/>\n            <img decoding=\"async\" src=\"https:\/\/mma.prnewswire.com\/media\/876186\/New_BBVA_Logo.jpg\" title=\"BBVA's new logo (PRNewsfoto\/BBVA)\" alt=\"BBVA's new logo (PRNewsfoto\/BBVA)\" \/><br \/>\n          <\/a>\n        <\/p>\n<\/p><\/div>\n<p>&#8220;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 US, who will be part of a leading financial services group in the country,&#8221; said BBVA Group executive chairman <span class=\"xn-person\">Carlos Torres Vila<\/span>. &#8220;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.&#8221;<\/p>\n<p>In the U.S., BBVA is a Sunbelt-based bank with more than <span class=\"xn-money\">$100 billion<\/span> in assets and 637 branches, with leading market shares in <span class=\"xn-location\">Texas<\/span>, <span class=\"xn-location\">Alabama<\/span> and <span class=\"xn-location\">Arizona<\/span>. After the closing of the transaction, PNC, based in <span class=\"xn-location\">Pittsburgh, Pennsylvania<\/span>, will become the country&#8217;s fifth-largest bank by assets. The transaction excludes the broker dealer (BBVA Securities) and the branch in <span class=\"xn-location\">New York<\/span>, through which BBVA will continue to provide corporate &amp; investment banking services to its large corporate and institutional clients. It also excludes the representative office in <span class=\"xn-location\">San Francisco<\/span> and the fintech investment fund Propel Venture Partners. <\/p>\n<p>&#8220;Our acquisition will accelerate our growth trajectory and drive long-term shareholder value,&#8221; said <span class=\"xn-person\">William S. Demchak<\/span>, PNC&#8217;s chairman, president and chief executive officer. &#8220;This transaction is an opportunity to navigate our future from a position of strength, accelerating PNC&#8217;s expansion 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.&#8221;<\/p>\n<p>The all-cash deal by PNC values the business sold at 19.7 times its 2019 earnings and 1.34 times its tangible book value, as of September, 2020. Additionally, the deal unlocks hidden value as the price is more than 2.5 times the average valuation assigned by analysts to the business (\u20ac3.8 billion), for a business that represented less than 10%<sup>3<\/sup> of FY2019 Group&#8217;s net attributable profit. Also the price represents almost 50% of BBVA&#8217;s current market capitalization<sup>4<\/sup>. <\/p>\n<p>The transaction will have a positive impact on the fully loaded CET1 ratio of c.300 basis points, or \u20ac8.5 billion of CET1 generation. Including this positive impact, the Group&#8217;s pro-forma fully loaded CET1 ratio would reach 14.5% as of September, 2020. With the transaction, BBVA will have additional flexibility to invest in its markets and increase distributions to shareholders, with a sizeable buyback<sup>5<\/sup> as an attractive option at current share prices. The sale will generate a capital gain net of taxes of approximately \u20ac580 million and BBVA Group&#8217;s tangible book value will increase by \u20ac1.4 billion. <\/p>\n<p>The deal is expected to close in mid-2021 once the required regulatory approvals have been obtained. <\/p>\n<p>J.P. Morgan Securities plc served as exclusive financial advisor to BBVA, and Sullivan &amp; Cromwell LLP served as legal advisor. Bank of America, Citi, Evercore and PNC Financial Institutions Advisory acted as financial advisers to PNC and Wachtell, Lipton, Rosen &amp; Katz was legal counsel. <\/p>\n<p>For more BBVA news visit, <u><a target=\"_blank\" href=\"https:\/\/c212.net\/c\/link\/?t=0&amp;l=en&amp;o=2982524-1&amp;h=1819483746&amp;u=http%3A%2F%2Fwww.bbva.com%2F&amp;a=www.bbva.com\" rel=\"nofollow noopener noreferrer\">www.bbva.com<\/a><\/u>.<\/p>\n<p>\n        <b>BBVA Group<\/b><br \/>\n        <br \/>BBVA [NYSE: BBVA] is a customer-centric global financial services group founded in 1857. The Group has a strong leadership position in the Spanish market, is the largest financial institution in <span class=\"xn-location\">Mexico<\/span>, it has leading franchises in <span class=\"xn-location\">South America<\/span> and the Sunbelt Region of <span class=\"xn-location\">the United States<\/span>. It is also the leading shareholder in <span class=\"xn-location\">Turkey&#8217;s<\/span> Garanti BBVA. Its purpose is to bring the age of opportunities to everyone, based on our customers&#8217; real needs: provide the best solutions, helping them make the best financial decisions, through an easy and convenient experience. The institution rests in solid values: Customer comes first, we think big and we are one team. Its responsible banking model aspires to achieve a more inclusive and sustainable society.<\/p>\n<p>\n        <sup>1<\/sup>\u00a0EUR \/ USD exchange rate of 1.20<br \/><sup>2<\/sup>\u00a0Considers <span class=\"xn-money\">$587mn<\/span> 2019FY results for the business sold<br \/><sup>3<\/sup>\u00a0Excluding negative result of the Corporate Center<br \/><sup>4<\/sup>\u00a0As of <span class=\"xn-chron\">November 13th<\/span><br \/><sup>5<\/sup>\u00a0Any potential repurchase would at the earliest take place after the expected close of the transaction in mid-2021. Any proposed repurchase would (i) take into consideration share prices, among other factors and (ii) require Shareholders and Supervisory approvals and the lifting of the ECB&#8217;s recommendation on distributions to shareholders.<\/p>\n<p>\u00a0<\/p>\n<div class=\"PRN_ImbeddedAssetReference\" id=\"DivAssetPlaceHolder2\"><\/div>\n<p id=\"PURL\">\n        <img loading=\"lazy\" decoding=\"async\" title=\"Cision\" width=\"12\" height=\"12\" alt=\"Cision\" src=\"https:\/\/c212.net\/c\/img\/favicon.png?sn=DA92499&amp;sd=2020-11-16\" \/> View original content to download multimedia:<a id=\"PRNURL\" rel=\"nofollow\" href=\"http:\/\/www.prnewswire.com\/news-releases\/bbva-sells-us-subsidiary-to-pnc-for-11-6-billion-301173381.html\">http:\/\/www.prnewswire.com\/news-releases\/bbva-sells-us-subsidiary-to-pnc-for-11-6-billion-301173381.html<\/a><\/p>\n<p>SOURCE  BBVA <span class=\"xn-location\">USA<\/span><\/p>\n<\/p><\/div>\n<p>    <img decoding=\"async\" alt=\"\" src=\"https:\/\/rt.prnewswire.com\/rt.gif?NewsItemId=DA92499&amp;Transmission_Id=202011160114PR_NEWS_USPR_____DA92499&amp;DateId=20201116\" style=\"border:0px;width:1px;height:1px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>PR Newswire MADRID, Nov. 16, 2020 \/PRNewswire\/ &#8212;\u00a0BBVA has agreed to sell to PNC its subsidiary in the U.S. for $11.6 billion (\u20ac9.7 billion1) in cash, an amount that represents 19.7 times the unit&#8217;s 2019 earnings2, and that is almost 50% of BBVA&#8217;s current market capitalization, creating significant value for shareholders. The transaction will have a positive impact on BBVA&#8217;s fully loaded CET1 ratio of c.300 basis points, or \u20ac8.5 billion of CET1 generation. &#8220;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 US, who will be part of a leading financial services group in the country,&#8221; said BBVA Group executive chairman &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/www.marketnewsdesk.com\/index.php\/bbva-sells-u-s-subsidiary-to-pnc-for-11-6-billion\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;BBVA sells U.S. subsidiary to PNC for $11.6 billion&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-381315","post","type-post","status-publish","format-standard","hentry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>BBVA sells U.S. subsidiary to PNC for $11.6 billion - Market Newsdesk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.marketnewsdesk.com\/index.php\/bbva-sells-u-s-subsidiary-to-pnc-for-11-6-billion\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"BBVA sells U.S. subsidiary to PNC for $11.6 billion - Market Newsdesk\" \/>\n<meta property=\"og:description\" content=\"PR Newswire MADRID, Nov. 16, 2020 \/PRNewswire\/ &#8212;\u00a0BBVA has agreed to sell to PNC its subsidiary in the U.S. for $11.6 billion (\u20ac9.7 billion1) in cash, an amount that represents 19.7 times the unit&#8217;s 2019 earnings2, and that is almost 50% of BBVA&#8217;s current market capitalization, creating significant value for shareholders. The transaction will have a positive impact on BBVA&#8217;s fully loaded CET1 ratio of c.300 basis points, or \u20ac8.5 billion of CET1 generation. &#8220;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 US, who will be part of a leading financial services group in the country,&#8221; said BBVA Group executive chairman &hellip; Continue reading &quot;BBVA sells U.S. subsidiary to PNC for $11.6 billion&quot;\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.marketnewsdesk.com\/index.php\/bbva-sells-u-s-subsidiary-to-pnc-for-11-6-billion\/\" \/>\n<meta property=\"og:site_name\" content=\"Market Newsdesk\" \/>\n<meta property=\"article:published_time\" content=\"2020-11-16T06:17:40+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/mma.prnewswire.com\/media\/876186\/New_BBVA_Logo.jpg\" \/>\n<meta name=\"author\" content=\"Newsdesk\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Newsdesk\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/bbva-sells-u-s-subsidiary-to-pnc-for-11-6-billion\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/bbva-sells-u-s-subsidiary-to-pnc-for-11-6-billion\\\/\"},\"author\":{\"name\":\"Newsdesk\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/#\\\/schema\\\/person\\\/482f27a394d4fda80ecb5499e519d979\"},\"headline\":\"BBVA sells U.S. subsidiary to PNC for $11.6 billion\",\"datePublished\":\"2020-11-16T06:17:40+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/bbva-sells-u-s-subsidiary-to-pnc-for-11-6-billion\\\/\"},\"wordCount\":784,\"image\":{\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/bbva-sells-u-s-subsidiary-to-pnc-for-11-6-billion\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/mma.prnewswire.com\\\/media\\\/876186\\\/New_BBVA_Logo.jpg\",\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/bbva-sells-u-s-subsidiary-to-pnc-for-11-6-billion\\\/\",\"url\":\"https:\\\/\\\/www.marketnewsdesk.com\\\/index.php\\\/bbva-sells-u-s-subsidiary-to-pnc-for-11-6-billion\\\/\",\"name\":\"BBVA sells U.S. subsidiary to PNC for $11.6 billion - 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Market Newsdesk","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.marketnewsdesk.com\/index.php\/bbva-sells-u-s-subsidiary-to-pnc-for-11-6-billion\/","og_locale":"en_US","og_type":"article","og_title":"BBVA sells U.S. subsidiary to PNC for $11.6 billion - Market Newsdesk","og_description":"PR Newswire MADRID, Nov. 16, 2020 \/PRNewswire\/ &#8212;\u00a0BBVA has agreed to sell to PNC its subsidiary in the U.S. for $11.6 billion (\u20ac9.7 billion1) in cash, an amount that represents 19.7 times the unit&#8217;s 2019 earnings2, and that is almost 50% of BBVA&#8217;s current market capitalization, creating significant value for shareholders. The transaction will have a positive impact on BBVA&#8217;s fully loaded CET1 ratio of c.300 basis points, or \u20ac8.5 billion of CET1 generation. &#8220;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 US, who will be part of a leading financial services group in the country,&#8221; said BBVA Group executive chairman &hellip; Continue reading \"BBVA sells U.S. subsidiary to PNC for $11.6 billion\"","og_url":"https:\/\/www.marketnewsdesk.com\/index.php\/bbva-sells-u-s-subsidiary-to-pnc-for-11-6-billion\/","og_site_name":"Market Newsdesk","article_published_time":"2020-11-16T06:17:40+00:00","og_image":[{"url":"https:\/\/mma.prnewswire.com\/media\/876186\/New_BBVA_Logo.jpg","type":"","width":"","height":""}],"author":"Newsdesk","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Newsdesk","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/bbva-sells-u-s-subsidiary-to-pnc-for-11-6-billion\/#article","isPartOf":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/bbva-sells-u-s-subsidiary-to-pnc-for-11-6-billion\/"},"author":{"name":"Newsdesk","@id":"https:\/\/www.marketnewsdesk.com\/#\/schema\/person\/482f27a394d4fda80ecb5499e519d979"},"headline":"BBVA sells U.S. subsidiary to PNC for $11.6 billion","datePublished":"2020-11-16T06:17:40+00:00","mainEntityOfPage":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/bbva-sells-u-s-subsidiary-to-pnc-for-11-6-billion\/"},"wordCount":784,"image":{"@id":"https:\/\/www.marketnewsdesk.com\/index.php\/bbva-sells-u-s-subsidiary-to-pnc-for-11-6-billion\/#primaryimage"},"thumbnailUrl":"https:\/\/mma.prnewswire.com\/media\/876186\/New_BBVA_Logo.jpg","inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.marketnewsdesk.com\/index.php\/bbva-sells-u-s-subsidiary-to-pnc-for-11-6-billion\/","url":"https:\/\/www.marketnewsdesk.com\/index.php\/bbva-sells-u-s-subsidiary-to-pnc-for-11-6-billion\/","name":"BBVA sells U.S. subsidiary to PNC for $11.6 billion - 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