The price tag represents a small $112 million discount to the book value of Royal Bank of Canada's U.S. retail operations.
"The addition of RBC Bank provides PNC a great opportunity to enter attractive southeast markets in a way that will create value for our shareholders," said James Rohr, PNC's chairman and CEO, in a statement Monday.
RBC Bank (USA), with assets if about $25 billion, is based in Raleigh, N.C. It has 424 branches in North Carolina, Florida, Alabama, Georgia, Virginia and South Carolina.
PNC said it expects the deal to be accretive to earnings by the end of 2013 or sooner depending on the amount of the $3.45 billion purchase price that is paid in PNC common stock. Under terms of the agreement, PNC said it will have the option to pay up to $1 billion of the purchase price in common stock.
It's the second large banking transaction in the past few days. On Thursday,
Capital One Financial
of the Netherlands.
This article was written by a staff member of TheStreet.