Mitsubishi UFJ Financial Group Bought by US Bancorp for $ 8 Billion

Mitsubishi UFJ Financial Group Bought by US Bancorp for $ 8 Billion

US Bancorp – the parent company of the Bank of the United States – has bought US Mitsubishi UFJ Financial Group (MUFD) for $ 8 billion. In doing so, Minneapolis-based US Bancorp extends its presence to the West Coast of the United States.

With that purchase, US Bancorp jumps heavily on the list of the largest banks in California; the bank has risen from tenth to fifth place. In total, Bancorp will pay $ 5.5 billion in cash and approximately $ 44 million in Bancorp shares to MUFG. MUFG’s international trade and investment activities (and some supportive activities) are not part of the acquisition.

FD writes that major local lenders such as US Bancorp and PNC Financial Services Group are expanding their operations rapidly through purchases in the United States and abroad. According to the newspaper, they want to compete with major investment banks on Wall Street, such as JPMorgan Chase and Bank of America. In June, for example, PNC also bought Banco Bilboa Vizcaya Argentaria of Spain for $ 11.6 billion.

Improve access to financial products

US Bancorp CEO Andy Cecere explains that through the acquisition of MUFG, the bank seeks to improve its customers’ access to modern financial products. “While maintaining a strong reputation with the Bank of the United States, we are committed to maintaining the best record of both organizations in serving low-income customers.”