The US bank PNC announced on 20 June 2011 its decision to buy the Royal Bank of Canada's (RBC) retail banking subsidiary for 3.45 billion US dollars.
The addition of RBC Bank will provide PNC a great opportunity to enter attractive south-east markets in a way that will create value for PNC shareholders.
RBC Bank has 424 branches in North Carolina, Florida, Alabama, Georgia, Virginia and South Carolina. Their addition would make PNC the United States' fifth-biggest bank with 2870 branches. The deal is the second-biggest bank takeover in just a matter of days.
In mid June 2011 Capital One bought Dutch-owned online bank ING Direct USA for nine billion dollars.
Both PNC and Capital One are hardly known outside of the US, but both are household names in their home markets.
The number of US banks shrunk drastically during the financial crisis. Even larger banks were taken over by rivals, with savings bank Washington Mutual being taken over by JP Morgan Chase and financial services company Wachovia bought up by Wells Fargo.
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