Regulatory Go Ahead for US Bancorp to Acquire Union Bank
After receiving approval from U.S. and Japanese regulators, US Bancorp has acquired MUFG Union Bank from Mitsubishi UFJ Financial Group. This merger is expected to be completed by 2022.
Upon the announcement of their plans to acquire Pacific Continental Corporation for $8 billion, US Bancorp hopes to strengthen their presence in the West Coast states of California, Washington, and Oregon. This deal could bring in an additional one million customers, as well as 190,000 new business clients and a significant boost in loans and deposits.
After months of negotiations, US Bancorp and MUFG Union Bank have reached a deal for the latter to acquire the former for a combination of cash and stock valued at $5.5 billion. This acquisition will give MUFG a 2.9% ownership stake in US Bancorp, and both companies share similar values and goals for serving customers and increasing competition on the West Coast. US Bancorp chairman, president, and CEO Andy Cecere expressed his excitement for the deal and its potential benefits for customers.
In a recent announcement, US Bank stated that they will be notifying MUFG Union Bank customers of any changes to their accounts following the completion of their acquisition. Until the conversion is complete, customers can continue to use their current branches, websites, and mobile apps. The deal is expected to increase US Bank’s California deposits, currently at $601 billion, and move them up to the fifth largest depositor in the state.
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