Thread: PNC buys Royal Bank of Canada U.S. banks for $3.45 BILLION

PNC buys Royal Bank of Canada U.S. banks for $3.45B

Updated 3h 26m ago

NEW YORK (AP) — PNC(PNC) said Monday that it is buying the U.S. retail operations of Royal Bank of Canada(RY) for $3.45 billion.

PNC said that the transaction will bring its total to 2,870 branches and make it the fifth biggest among U.S. banks. RBC Bank (USA) has 424 branches and about $25 billion of assets.

PNC Chairman and CEO James Rohr said in a statement that the RBC acquisition will give PNC access to "attractive southeast markets in a way that will create value for our shareholders."

The deal adds about $19 billion of deposits and $16 billion of loans based on RBC Bank (USA) balances as of April 30.

The deal does not include Royal Bank of Canada's other U.S. operations providing capital markets and wealth management services.

RBC President and CEO Gordon Nixon said in a statement that RBC is fully committed to the U.S. market. He said the deal allows it to concentrate efforts on growing its wealth management and capital market services, which are the two largest components of its U.S. businesses.

PNC has also agreed to buy certain credit card assets of RBC Bank, (Georgia) National Association. RBC says that it will receive $165 million for the credit card assets.

It is the second big banking transaction in recent days following the announcement that Capital One struck a $9 billion deal to buy the online bank of the Dutch financial services company ING.

A Wall Street Journal report on Sunday said that PNC beat out rival regional bank BB&T for the RBC operations.

PNC has the option to pay for the deal with up to $1 billion in common stock. The company expects to pay for the cash portion of the transaction with available cash, debt issuance and a preferred stock offering.

It expects the buyout to add to its earnings by the end of 2013 or sooner depending on if any of the purchase price is paid for with its common stock.

PNC anticipates acquisition-related costs of approximately $322 million.

RBC expects the deal to result in a loss of about 1.6 billion Canadian dollars ($1.63 billion), which will be recorded in the current quarter. The transaction is expected to add to earnings in 2012.

The acquisition, which has been approved by both companies' boards, is expected to close in March 2012.

http://www.usatoday.com/money/industrie ... -RBC_n.htm

I guess after this they will want a bail out Just goes to show how much banks make off our money.

PNC Financial Services
From Wikipedia

PNC Financial Services Group, Inc. is a U.S.-based financial services corporation, with assets (as of December 31, 2010) of approximately $264.3 billion.[2] PNC operations include a regional banking franchise operating primarily in fifteen states and the District of Columbia, specialized financial businesses serving companies and government entities, and leading Turnkey Asset Management Program (TAMP) and processing businesses. PNC is the sixth largest bank by deposits in the United States[3] and is the third largest bank off-premise ATM provider.[4]

New corporate headquarters
On May 23, 2011, PNC unveiled plans for a new $400M corporate headquarters building in downtown Pittsburgh.[14] The new building, known as the Tower at PNC Plaza, will be a 40-story, 800,000-square-foot skyscraper approximately 600' tall at the intersection of Fifth Avenue and Wood Street. PNC will own the building and occupy all the space except for street-level storefronts which it will lease to retail tenants.

http://en.wikipedia.org/wiki/PNC_Financial_Services