PNC TO BUY SPAIN’S BBVA’S U.S. BANKING ARM FOR $11.6B IN CASH

PNC Financial Services Group Inc. said it would buy the US business of Spanish lender BBVA for $11.6 billion in cash, further consolidating the US banking sector.

It is the second-largest US banking deal since the 2008 financial crisis and creates a US bank with nearly $560 billion of assets and a presence in two dozen states, Greg Roumeliotis and David French reported for Reuters.

The move underscores how a loosening of financial regulations and lowering of corporate taxes under President Donald Trump has emboldened regional lenders to pursue scale through dealmaking, as they compete with bigger players such as JPMorgan Chase & Co. and Wells Fargo & Co.

PNC and BBVA have been in talks about a deal for the last few weeks, and decided to press on following the outcome of the Nov. 3 US presidential election because they believe the regulatory environment will not change with Democrat Joe Biden as president and the Republicans likely controlling the US Senate, sources told Reuters. PNC said it was expecting the deal, which has been approved by the boards of both companies, to add to its earnings by about 21% in 2022.