RBC Bank Sold

RBC Bank PNC: RBC Bank Sale Confirmed: RBC Bank was potentially being sold off. For many people this was not a surprising outcome for RBC Bank , as there were numerous problems in its operations. It was expected that RBC Bank would be sold for roughly $3 billion.The buyer for RBC’s U.S. operations and the price it is being sold for.
 

Financial Services Group Inc (PNC) will be buying RBC’s U.S. retail bank operations for $3.45 billion in cash and stock. This purchase will allow PNC to expand in the U.S. Southeast.

RBC Bank has been sold for $3.45 billion in cash and stock. PNC is paying for the deal with in that combination, however the final composition of cash and stocks will not be known until next year. In the event regulators were to ask PNC to raise capital for the deal, the bank would issue as much as $1 billion in common stock to RBC, or 3% of PNC’s outstanding common shares.

RBC expects that the deal will add to their 2012 earnings, while PNC expects that the purchase will add to its earnings by the end of 2013 or sooner.