Market share battle: BNP Paribas to ditch US unit for more than $16bn
BNP Paribas is set to sell off its US unit for $16.3bn, after battling for a share of the region’s retail banking market.
Shares inched 0.9 per cent higher to 56.6p per share near market close.
The deal with BMO Financial Group for BNP Paribas’ Bank of the West is expected to bolster BMO’s position in the US, with the addition of around $105bn in assets.
The Bank of the West, founded in 1874, will also bring nearly 1.8m customers under BMO’s wing.
Once the deal is complete, BNP Paribas, France’s largest bank, will focus on Europe – where it has snapped up equity and prime broking businesses from Deutsche Bank and Credit Suisse.
“This is a value accretive transaction for all sides, which emphasises the quality of the Bank of the West franchise,” BNP Paribas CEO Jean-Laurent Bonnafe said today.
The French bank will use the extra capital to fund more share buybacks and further European acquisitions.