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By Scott Deveau, Hannah Levitt and Charlie Devereux
PNC Financial Services Group agreed to buy the Birmingham-based U.S. banking operations of Banco Bilbao Vizcaya Argentaria (BBVA) SA for $11.6 billion, vaulting PNC past rivals to become the country’s largest regional bank.
PNC’s purchase uses the $14 billion it raised earlier this year from selling its stake in BlackRock to fuel an expansion into Texas and California and compete with U.S. retail banking giants. For BBVA, the deal sheds a recent source of write-downs while giving the Spanish lender capital to possibly pursue acquisitions of its own.
U.S. regional lenders are seeking to bulk up to compete with banking giants, such as JPMorgan Chase & Co. and Bank of America, which are moving into new states and spending billions annually on digital offerings. The question becomes whether PNC’s move will spur regional rivals into their own expansions or simply take the most vocal buyer off the market.
The rest of the article is located at AlabamaNewsCenter.com.
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