PNC Financial Services Group says it is buying the U.S. subsidiary of Spain’s BBVA bank for $11.6 billion in cash. In the investor call announcing the merger, PNC Chairman and CEO William Demchak said the combined company will run primarily on PNC's infrastructure. https://t.co/W7hverxFFP. History; Acquisition history Banco Bilbao Vizcaya Argentaria SA (BBVA) was established in Spain in 1988, as a result of the merger between Banco de Bilbao, SA and Banco de Vizcaya, SA. "This transaction is an opportunity to navigate our future from a position of strength, accelerating PNC's national expansion strategy while drawing on our experience as a disciplined acquirer. The deal has been resoundingly approved by both … PNC Financial Services said on Monday that it would acquire the U.S. business of the Spanish lender BBVA for $11.6 billion. Banco Bilbao Vizcaya Argentaria, S.A. (Spanish pronunciation: ... Merger of BBV and Argentaria: Creation of BBVA. Santander, BBVA Split on Deals After Challenge from CaixaBank BBVA acquired the company in 2007, when it was called Compass Bancshares, according to its website. Houston has been a major hub for the bank since Spanish financial giant Banco Bilbao Vizcaya Argentia SA acquired Compass Bancshares Inc. in 2007, forming BBVA Compass. Compass Bank is not active anymore since 1997-09-17 due to Merger - Without Assistance. The headquarter was located at 76 South Laura Street, Jacksonville, FL … Exiting the US operation, previously known as Compass, makes more sense for BBVA as it stood no chance of reaching top-tier national status there. The COVID-19 pandemic has also accelerated trends toward digital banking and app-based services. It will be the fifth largest bank in the U.S. based on total assets. Though Birmingham city officials had no comment on the deal, Gov. The present name was adopted in 2000, after the merger with Argentaria, Caja Postal y Banco Hipotecario, S.A. With a customer-focused retail business model, BBVA offers clients comprehensive products and services and is engaged in … BBVA Compass includes the group’s US domestic and international brokerage and wealth management units. BBVA bought Compass for $9 billion in 2007 and has been operating BBVA Compass as its U.S. subsidiary. When it looked to expand in 1987, it bypassed surrounding states and went into Texas, becoming the first out-of-state institution to buy a bank there. As of last year, BBVA coordinated its Birmingham tech presence with operations in Mexico and Spain, developing cyber security and other needs for the company. Read more. “Technology is going to be an increasingly large part of our operation in terms of distribution, digitalization. According to S&P Global Market Intelligence, the first few months of 2019 alone have produced three of the biggest fintech merger announcements ever made. entered into with Banco Bilbao Vizcaya Argentaria, S.A., or BBVA. … The cash deal will boost PNC’s earnings by about 21% in 2022 and generate more than $900 million of cost … Banco Bilbao Vizcaya Argentaria, S.A. (Spanish pronunciation: [ˈbaŋko βilˈβao βiθˈkaʝa aɾxenˈtaɾja]), better known by its initialism BBVA, is a Spanish multinational financial services company based in … BBVA Compass, a recognized leader in physician home loans, is merging with PNC, a bank with its headquarters in Pittsburgh, PA. The first few months of 2019 alone have produced three of the biggest fintech merger announcements ever made. "The deal enhances our already strong financial position. Last and by no means least, the U.S. operations of BBVA (Compass) have been under-earning for some time already, and COVID-19 is only intensifying the … BBVA has agreed to buy U.S. bank Compass Bancshares Inc. for $9.6 billion, the Spanish bank said on Friday, realizing a long-held ambition to gain a firm footing in the United States. BBVA’s U.S. operations, which are based in Houston, Texas, have $104 billion in assets and operate 637 branches, mainly in the south and southwest of the country. BBVA USA, though based in Houston, has kept a significant presence in Birmingham through its technology operations. Foreign Merger Company BBVA COMPASS INSURANCE AGENCY, INC. Filing Date 2011-04-12 Description MERGED PALADIN BROKERAGE SOLUTIONS, INC. (AZ) 2362564 (FILED UNDER AZ LAW ON 06/12/2009) (10 PG) 1995 marked the start of an era of significant expansion for BBVA. BBVA, which in 2007 bought Alabama-based Compass Bancshares, has about $100 billion of assets in the U.S. with branches across the Sunbelt, including a major presence in Texas. “In general terms, technology, and the need for it, is a core component of banking these days, not only in terms of technology but where we need to go, and everybody knows that,” Reilly said. Overnight, the Birmingham, Ala.-based bank went from 397 branches in the Sunbelt states of the United States to … … In the investor call announcing the merger, PNC Chairman and CEO William Demchak said the combined company will run primarily on PNC's infrastructure. BBVA USA moved its headquarters from Birmingham to Houston in 2019, and adopted the BBVA branding, taking the "Compass" brand from its name. Now it is just BBVA. That bank eventually became Compass Bank, which was acquired by Spain's BBVA in 2007. The cash deal will boost PNC’s earnings by about 21% in 2022 and generate more than $900 million of … ‘Almost all … © 2021 Advance Local Media LLC. PNC has recognized the great value of our unique client franchise and of our great team in the U.S., who will be part of a leading financial services group in the country," said BBVA Group Executive Chairman Carlos Torres Vila. Rob Reilly, chief financial officer for PNC, said today from Philadelphia that BBVA was PNC’s “number one pick” when it began nosing around for an acquisition following the May sale of its stake in money manager Blackrock Inc. for about $11 billion. Banco Bilbao Vizcaya Argentaria is a financial group with more than $520 billion in total assets and 7,500 branches in 35 countries, according to the company. The transaction, which has been approved by both companies' boards of directors, is expected to close in mid-2021, subject to customary closing conditions, including regulatory approvals. Monday’s acquisition is the largest U.S. banking deal since the merger of BB&T and SunTrust. The banks are the 12 th and 13 th largest US banks based on assets and the combined entity will become the sixth largest US bank. Covid-19 has made Spain’s Sabadell, most obviously, more in need of a merger partner. BBVA is a member of BBVA Group, a customer-centric global financial services group founded in 1857. Bass said that it's disappointing to see BBVA exiting the U.S. banking market 13 years entering the country in 2007 with the $9.6 billion Compass acquisition. The transaction excludes broker dealer BBVA Securities and the branch in New York, … In the transaction, Compass will be acquired by BBVA. Banking BBVA Compass Named in the World's Best Banks Report. The $104 billion-asset BBVA USA, based in Houston, is a unit of Spain’s Banco Bilbao Vizcaya Argentaria. The deal with the Spanish banker was seen at the time as a win-win, as both entities had no overlapping markets, meaning no branches would close and no jobs would be cut. Following the acquisition, Compass Bank was renamed BBVA Compass. It will have assets of almost $59 billion and 593 branches. The first is that BBVA Compass is written out of the PNC deal altogether and either sold to another group or turned into a subsidiary of BBVA Mexico, the Spanish bank’s Mexican arm. BBVA, the first Spanish bank on the Nasdaq sustainable debt market PNC said it expects its merger with BBVA USA to be about 21% accretive to its 2021 earnings and to replace net income generated from passive BlackRock investment. For PNC, the deal would be its first bank acquisition since it bought Royal Bank of Canada’s U.S. operations in March 2012 for $3.5 billion. For instance, PNC is expected to keep its existing core system and it is not buying BBVA… PNC Financial Services Group Inc. said Monday it is buying the U.S. subsidiary of Spain’s BBVA bank for $11.6 billion in cash. With BBVA, you benefit from the … That process has already started out west and locally the big day is Jan. 15. Investments and divestments. BBVA USA moved its headquarters from Birmingham to Houston in 2019, and adopted the BBVA branding, taking the "Compass" brand from its name. United States (including Puerto Rico): The Group's activity in the United States is mainly carried out through a group of companies with BBVA Compass Bancshares, Inc. at their head. Kay Ivey welcomed it via Twitter this morning: With approximately 89 BBVA locations already in Alabama, this @PNCBank & @BBVA_USA merger is welcome news for Alabama! The all-cash deal is the second-largest U.S. banking acquisition since the 2008 financial meltdown, according to Reuters. After D. Paul Jones took over the helm of the bank in 1991 from Harry Brock, Central Bank rebranded as Compass Bank. By that time, Compass was one of the 25 largest banks in the U.S. and had more than 2,500 employees in the Birmingham area. Exiting the US operation, previously known as Compass, makes more sense for BBVA … Reilly said technology figures heavily in PNC’s plans, which is good news for Birmingham. Microsoft may earn an Affiliate Commission if you purchase something through recommended links in this article. As the final step of the merger, Compass is in the process of rebranding. Sign into BBVA Online Banking to access your bank accounts, pay bills, transfer money, and more. The headquarter was located at 24 Greenway Plaza, Houston, TX 77046. The deal has been resoundingly approved by both companies’ boards of directors. It was born out of the merger of two major Spanish banking institutions. BBVA USA was the successor institution. 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