US Bancorp makes a major acquisition

The acquisition, which includes $ 5.5 billion in cash and 44 million US Bancorp shares, will give MUFG a 2.9% minority stake in the Minneapolis-based bank. Additionally, US Bank will gain more than one million clients and about 190,000 small business clients on the West Coast once the deal closes. It also gets $ 58 billion in loans and $ 90 billion in deposits based on MUFG Union Bank’s June 30 balance sheet.

“The acquisition of MUFG Union Bank underscores our commitment to strengthening and growing our West Coast business, making investments to serve customers and local communities, and enhancing competition in the financial services industry,” said Andy Cecere, principal. a US Bancorp executive in a statement.

US Bank will retain all front-line employees of MUFG Union Bank. Expect the transaction to increase earnings per share by 6% in 2023 and earnings by 8% when fully integrated.

“We are very pleased to have reached this agreement that will allow MUFG to focus and increase our resources on accelerating growth in our wholesale businesses in the Americas, specifically our corporate and investment banking, global markets, Japanese corporate banking and transaction banking businesses. Kevin said. Cronin, MUFG Regional Executive for the Americas and CEO of MUFG Americas Holdings and MUFG Union Bank.

The merger is expected to close in the first half of 2022, according to the MUFG Union Bank press release.

Leave a Comment