US Bank acquires US assets from Mitsubishi UFJ Financial Group

The $ 8 billion deal is expected to allow the Minneapolis-based bank to add more than a million individuals and around 190,000 small businesses to its customer base.

The American company US Bank announced on Tuesday that it wanted to buy the retail banking activities of the Japanese group Mitsubishi UFJ Financial Group (MUFG) in the United States, MUFG Union Bank, for about $ 8 billion, an operation that allows it to strengthen on the west coast of the country.

The operation should indeed allow US Bank, based in Minneapolis in the center of the United States, to add to its client portfolio more than a million individuals and around 190,000 small businesses.

US Bank, the country’s 5th largest bank in terms of assets, assures that it will remain present in all markets where MUFG Union Bank is currently established in the states of California, Washington and Oregon.

MUFG Union Bank currently has 305 branches primarily located on the West Coast with sales branches based in the states of Texas, Illinois, New York and Georgia.

Under the terms of the deal, US Bank will pay $ 5.5 billion in cash and approximately 44 million shares.

The transaction does not include the merchant and investment banking services of MUFG in the United States and certain other assets.

For Kevin Cronin, head of the Japanese group in the Americas, the operation will allow his company to focus “on accelerating the growth of its key account activities”.

The transaction, approved by the boards of directors of both companies, is expected to be finalized in the first half of 2022.

MUFG took control of Union Bank in 2008.

Other large foreign banks which had attempted the adventure of retail banking in the United States have also recently chosen to end it, such as the Spanish bank BBVA which finalized in June the sale of its subsidiary. in the United States to the American group PNC Financial Services or the British company HSBC which announced in May that it wanted to separate from its network of branches in the country.

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