The 9.6 billion transaction will place Banco Bilbao (BBVA) among the top 20 banks in the US, becoming a regional leader in the markets of Texas, Alabama, Arizona and New Mexico and also with a significant presence in Florida and Colorado.
The new BBVA US franchise will reach US$ 47.000 million in assets, US$ 32.000 million in loans, US$ 33.000 million in deposits and 622 branches in a total of 7 states after the transaction.
The transaction is the largest acquisition announced in BBVA's history and presents an excellent strategic fit with BBVA's recent acquisitions in the US from 2004 to 2006 of Valley Bank, Laredo National Bancshares, Texas Regional Bancshares and State National Bancshares.
BBVA will offer Compass shareholders the right, subject to proration, to elect to receive 2.8 BBVA shares or ADS or $71.82 in cash for each Compass share, representing a 16.1% premium over the last ten trading days average
BBVA will finance the acquisition through a capital increase of 196 million shares of BBVA, internal resources coming from the sale of selected stakes and internal capital generation.
The transaction allows BBVA to advance its strategy to move towards a more global group and after the transaction the US will contribute approximately 10% of group's earnings.
Compass, with total assets of US$ 34.200 million, a network of 417 branches and a net profit of US$ 460 million, will notably increase the growth capacity of BBVA US in retail and SMEs banking and in other business, such as insurance and credit cards
BBVA has announced today a definitive agreement to acquire 100% of the shares of Compass Bancshares Inc. for a value of approximately US$ 9.600 million, taking a decisive step in its growing strategy in the US. BBVA will offer Compass shareholders the right, subject to proration, to elect to receive 2.8 BBVA American Depositary Shares or US$71.82 in cash for each Compass share, representing a 16.1% premium over the last ten trading days average.
With this transaction BBVA US will place Banco Bilbao among the top 20 banks in the US with a franchise of 622 branches, US$ 47.000 million in assets, the regional leadership in the markets of Texas, Alabama, Arizona and New Mexico and a significant presence in Florida and Colorado. The US franchise, after the transaction, will contribute approximately to 10% of the group's earnings, showing an important advance in BBVA's strategy to move towards a more global financial group
The transaction, subject to regulatory and shareholder approvals, has been approved by the by the Board of Directors of BBVA and Compass. The transaction is expected to create value for BBVA shareholders and to provide an excellent fit with BBVA's growth profitable strategy. At the same time, the transaction is attractive for Compass shareholders and permits the integration of Compass into one of the more profitable and efficient global franchises. - Banco Bilbao
Teaser
The 9.6 billion transaction will place Banco Bilbao (BBVA) among the top 20 banks in the US, becoming a regional leader in the markets of Texas, Alabama, Arizona and New Mexico and also with a significant presence in Florida and Colorado.
Body Text
The new BBVA US franchise will reach US$ 47.000 million in assets, US$ 32.000 million in loans, US$ 33.000 million in deposits and 622 branches in a total of 7 states after the transaction.
The transaction is the largest acquisition announced in BBVA's history and presents an excellent strategic fit with BBVA's recent acquisitions in the US from 2004 to 2006 of Valley Bank, Laredo National Bancshares, Texas Regional Bancshares and State National Bancshares.
BBVA will offer Compass shareholders the right, subject to proration, to elect to receive 2.8 BBVA shares or ADS or $71.82 in cash for each Compass share, representing a 16.1% premium over the last ten trading days average
BBVA will finance the acquisition through a capital increase of 196 million shares of BBVA, internal resources coming from the sale of selected stakes and internal capital generation.
The transaction allows BBVA to advance its strategy to move towards a more global group and after the transaction the US will contribute approximately 10% of group's earnings.
Compass, with total assets of US$ 34.200 million, a network of 417 branches and a net profit of US$ 460 million, will notably increase the growth capacity of BBVA US in retail and SMEs banking and in other business, such as insurance and credit cards
BBVA has announced today a definitive agreement to acquire 100% of the shares of Compass Bancshares Inc. for a value of approximately US$ 9.600 million, taking a decisive step in its growing strategy in the US. BBVA will offer Compass shareholders the right, subject to proration, to elect to receive 2.8 BBVA American Depositary Shares or US$71.82 in cash for each Compass share, representing a 16.1% premium over the last ten trading days average.
With this transaction BBVA US will place Banco Bilbao among the top 20 banks in the US with a franchise of 622 branches, US$ 47.000 million in assets, the regional leadership in the markets of Texas, Alabama, Arizona and New Mexico and a significant presence in Florida and Colorado. The US franchise, after the transaction, will contribute approximately to 10% of the group's earnings, showing an important advance in BBVA's strategy to move towards a more global financial group
The transaction, subject to regulatory and shareholder approvals, has been approved by the by the Board of Directors of BBVA and Compass. The transaction is expected to create value for BBVA shareholders and to provide an excellent fit with BBVA's growth profitable strategy. At the same time, the transaction is attractive for Compass shareholders and permits the integration of Compass into one of the more profitable and efficient global franchises. - Banco Bilbao
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