PNC Financial Receives Approval For BBVA USA Acquisition
Diversified financial services company The PNC Financial Services Group (PNC) has received regulatory approval for its acquisition of BBVA USA Bancshares Inc. along with its U.S. banking subsidiary.
The approval included the green light from the Board of Governor of the Federal Reserve System, the Office of the Comptroller of the Currency, as well as Banking departments of the States of Alabama and Texas.
Upon closure of the acquisition, which is expected on June 1, PNC Financial will become the fifth-largest commercial bank in the U.S. with assets of more than $560 billion.
PNC Financial Chairman, President, and CEO William S. Demchak said, “We are pleased to have received regulatory approval of our acquisition that will accelerate our growth trajectory and drive long-term shareholder value.” (See PNC Financial stock analysis on TipRanks)
Demchak added, “With common cultures and values and a shared commitment to our customers, employees, and communities, we look forward to bringing PNC’s industry-leading technology and innovative products and services to new markets and clients.”
On May 6, Wells Fargo analyst Mike Mayo reiterated a Buy rating on the stock and raised the price target to $230 (15.4% upside potential) from $197.
Mayo highlighted expected benefits from the BBVA USA acquisition for the upward target price revision and believes the transaction is “one of the most advantageous purchase prices since the GFC.”
Consensus among analysts is that PNC Financial is a Moderate Buy based on 7 Buys and 8 Holds. The average analyst price target of $196.07 implies the stock is fairly priced at current levels. Shares have gained 91.6% over the past year.
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