BNP Paribas to Sell Bank of the West to Bank of Montreal for $16.3 Billion
December 20 2021 - 2:48AM
Dow Jones News
By Cristina Roca
BNP Paribas SA said Monday that it has agreed to sell Bank of
the West to Bank of Montreal for a total consideration of $16.3
billion in cash.
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.
The sale represents all of BNP Paribas's retail and
commercial-banking activities in the U.S.
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.
The deal is expected to close in 2022.
Write to Cristina Roca at cristina.roca@wsj.com
(END) Dow Jones Newswires
December 20, 2021 02:33 ET (07:33 GMT)
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