U.S. Bancorp To Buy MUFG Union Bank In Deal Valued At Approx. $8 Bln

U.S. Bancorp (USB) has agreed purchase MUFG Union Bank from Mitsubishi UFJ Financial Group for approximately $8 billion, including $5.5 billion in cash and approximately 44 million shares of U.S. Bancorp common stock. Upon close of the deal, Mitsubishi UFJ Financial will hold a minority stake of approximately 2.9% in U.S. Bancorp.

As of June 30, 2021, MUFG Union Bank, N.A. operated 305 branches. MUFG Union Bank has assets of $133.2 billion, as of June 30, 2021. It is a member of the Mitsubishi UFJ Financial Group.

U.S. Bancorp expects the deal to be approximately 6% accretive to earnings per share in 2023, and 8% accretive to earnings when fully integrated. U.S. Bancorp expects to achieve approximately $900 million in pre-tax cost synergies, and anticipates to incur merger charges of $1.2 billion. The transaction is anticipated to close in the first half of 2022.

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