Deal: US Bancorp Buys MUFG Union Bank For $8B
There’s a big new consolidation-by-acquisition in the American financial services industry. It’s that US Bancorp, a retail banking giant, is buying the MUFG Union Bank, the American retail banking division of the Japanese financial services giant Mitsubishi UFJ Financial Group.
- US Bancorp will pay $8bn to buy MUFG Union Bank, split into $5.5bn in cash and 44 million shares worth $2.5bn at current prices. Upon closing the deal, the Japanese parent company of the acquired bank will hold a 2.9% stake in US Bancorp with the shares it’s getting.
- Notably, the acquisition excludes MUFG Union Bank’s corporate and investment banking operations and certain other assets, with the focus mostly on its retail banking operations.
- From the purchase, U.S. Bank will notably rise from the 10th largest holder of deposits in the state of California (where its biggest operations are) to the 5th, it said. In all, the acquisition will do very good to US Bancorp’s business.
- The acquisition is expected to close in the first half of next year.