Share Name Share Symbol Market Type
BNP Paribas EU:BNP Euronext Ordinary Share
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  1.12 2.57% 44.55 44.54 44.80 44.875 43.90 44.24 3,469,291 16:40:00

BNP Paribas to Sell US Unit to Bank of Montreal for $16.3 Billion -- Update

20/12/2021 8:12am

Dow Jones News


BNP Paribas (EU:BNP)
Historical Stock Chart


From Jul 2021 to Jul 2022

Click Here for more BNP Paribas Charts.

By Cristina Roca

 

BNP Paribas SA said Monday that it has agreed to sell Bank of the West to Bank of Montreal's BMO Financial Group for a total consideration of $16.3 billion in cash.

The sale represents all of BNP Paribas's retail and commercial-banking activities in the U.S. Some 70% of Bank of the West's deposits are in California.

The Wall Street Journal reported that the two companies were in advanced talks earlier Monday.

The French lender said the deal will generate a one-off capital gain, net of taxes, of about 2.9 billion euros ($3.26 billion), and boost its common equity Tier 1 ratio by about 170 basis points.

Separately on Monday, BMO said the deal should be accretive to its earnings per share immediately after closing, and more than 10% accretive in 2024 including cost synergies.

The deal will be funded mainly through excess capital on the combined entities' balance sheet at closing, BMO said. It backed its target capital ratios and target payout range.

BNP Paribas said it intends to implement an extraordinary share buyback to compensate the expected earnings-per-share dilution from the deal. Indicatively, about EUR4 billion would fully neutralize the dilution, it said.

The rest of the proceeds of the deal, estimated at about EUR7 billion, should be redeployed to accelerate organic growth, especially in Europe, make targeted investments and acquire value-added businesses, BNP Paribas said.

The deal is expected to close in 2022.

 

Write to Cristina Roca at cristina.roca@wsj.com

 

(END) Dow Jones Newswires

December 20, 2021 02:57 ET (07:57 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.

1 Year BNP Paribas Chart

1 Year BNP Paribas Chart

1 Month BNP Paribas Chart

1 Month BNP Paribas Chart
ADVFN Advertorial
Your Recent History
EU
BNP
BNP Pariba..
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:gb D:20220707 16:47:10