PNC Completes $11.6 Billion Acquisition of BBVA USA
PNC Financial Services Group completed its acquisition of BBVA USA Bancshares and its subsidiary BBVA USA for $11.6 billion in an all-cash transaction. The deal, originally announced in November 2020, was the second-largest U.S. banking acquisition since the 2008 financial crisis. The combined entity holds more than $550 billion in assets and creates the fifth-largest retail bank in the United States.
BBVA USA brought a significant branch network across Sun Belt states including Texas, Alabama, Arizona, California, Colorado, Florida, and New Mexico. PNC's expanded scale positions it to compete more aggressively in digital banking and embedded financial services. The Federal Reserve reviewed the application, with documentation filed on December 29, 2020.
Sullivan & Cromwell advised BBVA on the sale of its U.S. subsidiary. The acquisition gives PNC a substantially larger platform from which to pursue fintech partnerships and Banking-as-a-Service opportunities.
- PNC's expanded scale and geographic reach position it to become a major player in BaaS and embedded finance partnerships
- Consolidation among large U.S. banks may reduce the number of potential sponsor bank partners for fintechs while increasing the capabilities of remaining players