Big news today, PNC Financial Services Group Inc are making a bid for RBC (Royal Bank of Canada).
PNC is the 6th largest bank in America and has made an offer to pay a total of $3.62 billion in cash and stock for the Royal Bank of Canada’s retail business.
PNC wishes to acquire RBC to help grow its retail banking business. Currently its main presence is centered in Florida and the neighbouring states whereas RBC has over 420 branches in 15 states in northern US states.
Many other Canadian banks are currently looking to expand into America so this move by RBC to invite a takeover by an American bank is an interesting decision to say the least. RBC has had some financial issues in the last few years and has suffered from too much real estate exposure during the sub-prime crisis.
PNC will be taken on a lot of debts from RBC. RBC Bank has made losses for each of the last 11 quarters.
PNC Takeover Terms
PNC takeover offer terms will be announced soon. The takeover is expected to be completed in the first quarter of 2012.