This Deal Makes a Great Business Stronger
After BB&T and SunTrust merged to become Truist Financial in 2019, and then PNC Financial Services Group announced the acquisition of Banco Bilbao Vizcaya Argentaria's U.S. operations in 2020, it seemed like it was only a matter of time before close competitor U.S. Bancorp (NYSE: USB) made a move.
That came when U.S. Bancorp recently announced its intention to acquire the American banking arm of Mitsubishi UFJ Financial Group, which is referred to as Union Bank, in a part-cash, part-stock deal valued at roughly $8 billion. The deal continues the wave of consolidation in the banking sector, as banks of all sizes try to further scale in order to accelerate technology and digital banking initiatives, while making returns more attractive to investors.
U.S. Bancorp has historically been a very strong bank and a good, stable investment. Is the bank still a buy following this major acquisition?
Source Fool.com
