BNP Paribas exits US, sells Bank of the West for USD 16.3 bln

Tuesday 21 December 2021 10:37 CET | News

BNP Paribas has agreed to sell its San Francisco-based Bank of the West to Bank of Montreal for USD 16.3 billion, becoming the latest European lender to exit US retail banking.

The Canadian bank, also known as BMO Financial Group, said it would mainly fund the cash deal through excess capital. It already has a presence in several US states. BNP originally bought Bank of the West in 1979.

European banks have been gradually retreating from the US market, having struggled to compete with big nationwide lenders such as JPMorgan Chase, Bank of America, and Wells Fargo. The Bank of the West sale was expected to close by the end of 2022, the banks said.

BNP said it would carry out a EUR 4 billion share buyback once the deal was concluded. It said it would use the rest of the proceeds from the sale — about USD 2 billion more than some analysts had expected — to invest in its operations, including in technology, and through acquisitions.

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Keywords: acquisition, banks, funding, retail banking
Categories: Banking & Fintech
Countries: North America
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Banking & Fintech

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