(WSJ) US Bancorp will buy MUFG Union Bank’s core regional banking franchise from Mitsubishi UFJ Financial Group in a cash and stock deal of $8 billion.
The deal includes $5.5 billion in cash, and 44 million shares of Bancorp. MUFG will hold a 2.9% minority stake in US Bancorp after the deal, which closes in the first half of 2022.
The deal is expected to boost US Bancorp’s presence in various parts of the West Coast and California.
US Bancorp expects to acquire at least a million customers and 190,000 small business clients in the West and about $90 billion in deposits and $58 billion in loans on MUFG’s balance sheet.
US Bancorp projects a 6% uptick in per-share earnings in 2023 following the transaction, and up to $900 million in pretax cost savings.
USB: NYSE is up +1.19% on premarket, 8306: TYO is down -1.50%.
