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US Bancorp has received approval from US regulators including the Federal Reserve and the Office of the Comptroller of the Currency (OCC) to complete its proposed acquisition of MUFG Union Bank from Mitsubishi UFJ Financial Group.
MUFG Union Bank has also received approval from the Federal Deposit Insurance Corporation (FDIC).
The deal still requires approval from Japanese regulators but is expected to close before the end of 2022.
US Bancorp initially announced the $8 billion acquisition back in September 2021 in a bid to strengthen its presence and market position in California, Washington and Oregon.
The firm stands to gain one million customers and around 190,000 business customers from the deal along with “significant loans and deposits”.
The acquisition includes $5.5 billion in cash and approximately 44 million shares of US Bancorp common stock. Mitsubishi UFJ Financial Group will also hold a minority stake of approximately 2.9% in US Bancorp upon completion.
US Bank chairman, president and CEO Andy Cecere says his company shares “many common values with MUFG Union Bank” and the deal will allow the firm to “make investments to serve customers and enhance competition on the West Coast”.
US Bank adds it will provide MUFG Union Bank customers with information regarding the conversion of their accounts upon completion of the deal.
“Until conversion, customers will continue to be served by their respective branches, website and mobile apps,” the bank says.
US Bank currently has around $601 billion in assets under management and says the deal will improve its deposit position in California from tenth to fifth.
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