BBVA is to buy US financial holding company Compass Bancshares Inc. for a value of approximately USD 9,6 billion, in order to further their growth in the US market. BBVA will also offer Compass shareholders the right to receive 2.8 BBVA American Depositary Shares or US.82 in cash for each Compass share, representing a 16.1 percent premium over the last ten trading days average.
This transaction will place BBVA among the top 20 banks in the US with a franchise of 622 branches and USD47 billion in assets. The US franchise, after the transaction, will contribute approximately to 10 percent of the group’s earnings. 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.
“With this transaction BBVA strengthens its presence in the southern US, one of the most attractive financial markets in the country, where BBVA has been present through its acquisitions of Laredo National Bancshares in 2005 and State National Bancshares and Texas Regional Bancshares in 2006,” says a spokesperson for BBVA. “It also highlights the excellent strategic fit with BBVA’s franchise in the US.”