(New York) The US bank on Tuesday announced that it would like to buy the retail banking operations of the Japanese Mitsubishi UFJ Financial Group (MUFG) in the United States and MUFG Union Bank’s retail banking operations for about $ 8 billion. Allowing the country to strengthen its west coast.
The move would actually allow US Bank of America, based in Minneapolis, to add more than a million individuals and approximately 190,000 small businesses to its customer portfolio.
Bank of America, la 5e In terms of assets, the country’s bank, MUFG Union Bank, currently ensures that it is present in all markets established in the states of California, Washington and Oregon.
MUFG Union Bank currently has 305 branches located primarily on the West Coast, with sales offices in the states of Texas, Illinois, New York and Georgia.
Under 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 and merchant banking services and some other assets.
According to Kevin Cronin, chairman of the Japanese Group in the United States, the move will allow his company to focus on “accelerating the growth of its core accounting operations.”
The transaction, approved by the board of directors of the two companies, is expected to be finalized in the first half of 2022.
MUFG took control of Union Bank in 2008.
Other major foreign banks that have tried the retail banking adventure in the United States have recently chosen to end it, with Spanish bank BBVA deciding to sell its subsidiary in June. In the United States, the US group PNC Finance Services or the British company HSBC announced in May that it wanted to secede from the branch network in the country.