US Bank to acquire West Coast banking chain for about $8B
Minneapolis-based U.S. Bancorp is buying West Coast banking chain MUFG Union Bank.
The purchase agreement is about $8 billion, which includes $5.5 billion in cash and approximately 44 million shares of U.S. Bank common stock.
Additionally, MUFG Union Bank will hold a 2.9% minority stake in U.S. Bank.
U.S. Bank is set to acquire MUFG Union Bank from Mitsubishi UFJ Financial Group.
"The acquisition of MUFG Union Bank underscores our commitment to strengthen and grow our business on the West Coast, make investments to serve customers and local communities and enhance competition in the financial services industry," Andy Cecere, chairman, president and CEO of U.S. Bancorp, said in a statement. "We are also committed to maintaining both organizations’ excellent records of serving low-income communities and supporting minority-led institutions."
The deal is expected to be completed in the first half of next year.