PNC Said to Be in Talks to Buy BBVA USA for Over $10 Billion

PNC Financial Services Group Inc. is in talks to acquireBanco Bilbao Vizcaya Argentaria SA’s banking operations in the U.S. for more than $10 billion, according to a person familiar with the matter.

PNC could announce a deal as soon as this week for BBVA USA, said the person, who asked to not be identified because the matter isn’t public. No final decision has been made and talks could fall through, the person said.

The deal would create a new giant in U.S. regional banking, which for years has been under pressure to consolidate as low interest rates depress growth.

PNC has been on the prowl for a takeover candidate since raising$14 billion earlier this year by selling its stake in BlackRock Inc., positioning it to seize opportunities amid the economic turmoil caused by the coronavirus pandemic.

The Wall Street Journal reported the talks earlier on Sunday.

BBVA USA has more than 600 branches in Texas, California, Florida and elsewhere, according to data from the Federal Deposit Insurance Corp. Spain’s BBVA acquired the company in 2007, when it was called Compass Bancshares,according to its website.

A representative for BBVA USA didn’t respond to a request for comment, while BBVA couldn’t be reached.

PNC shares dropped 23% this year, compared with a 36% decline in BBVA.

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