PNC to buy BBVA’s U.S. banking arm for $11.6 billion in cash

(Reuters) – PNC Financial Services Group Inc PNC.N said on Monday it would buy the U.S. business of Spanish lender BBVA BBVA.MC for $11.6 billion in cash, further consolidating the U.S. banking sector.

It is the second-largest U.S. banking deal since the 2008 financial crisis and creates a U.S. bank with nearly $560 billion of assets and a presence in two dozen states.

The move underscores how a loosening of financial regulations and lowering of corporate taxes under President Donald Trump has emboldened regional lenders to pursue scale through dealmaking, as they compete with bigger players such as JPMorgan Chase & Co JPM.N and Wells Fargo & Co WFC.N.

PNC and BBVA have been in talks about a deal for the last few weeks, and decided to press on following the outcome of the Nov. 3 U.S. presidential election because they believe the regulatory environment will not change with Democrat Joe Biden as president and the Republicans likely controlling the U.S. Senate, sources told Reuters. Reuters News

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