U.S. Bancorp announced it has completed the acquisition of MUFG Union Bank’s core regional banking franchise from Mitsubishi UFJ Financial Group, Inc. The transaction combines two premier organizations to serve customers and communities across California, Washington and Oregon and support a dedicated workforce across the West Coast. Customers will benefit from an expanded branch network, greater access to digital banking tools, and increased choice.
“The acquisition of MUFG Union Bank underscores U.S. Bank’s commitment to creating economic opportunities for our customers and communities across the West Coast,” said Andy Cecere, Chairman, President and Chief Executive Officer of U.S. Bancorp. “The closing of this acquisition brings together two premier organizations and their teams who are focused on putting customers first.”
U.S. Bank will provide MUFG Union Bank customers with information regarding the conversion of their accounts in the coming weeks. Until conversion of MUFG Union Bank systems and accounts, customers will continue to be served by their respective branches, website and mobile apps. Systems integration and account conversion is expected to occur in the first half of 2023.
Additionally, once customer conversion has occurred, implementation of U.S. Bank’s five-year, $100 billion community benefits plan will begin.
U.S. Bancorp, with approximately 70,000 employees and $601 billion in assets as of Sept. 30, 2022, is the parent company of U.S. Bank National Association. The Minneapolis-based company serves millions of customers locally, nationally and globally through a diversified mix of businesses: Consumer and Business Banking; Payment Services; Corporate & Commercial Banking; and Wealth Management and Investment Services.
Mitsubishi UFJ Financial Group said it has completed the sale of MUFG Union Bank's core regional banking franchise to U.S. Bancorp, following approvals from banking regulators in the U.S. and Japan.
Under the terms of the definitive agreement announced in September 2021, U.S. Bancorp purchased MUFG Union Bank for $5.5 billion in cash and approximately 44 million shares of U.S. Bancorp common stock. At transaction close, MUFG holds a minority stake of approximately 3 percent in U.S. Bancorp. As previously disclosed, the transaction excludes the purchase of MUFG Union Bank's Global Corporate & Investment Bank, certain middle and back-office functions, and other assets.
"We are very pleased to bring the sale to completion, which enables MUFG to increase our focus and direct our resources on accelerating growth in our Americas wholesale businesses," said Kevin Cronin, MUFG Americas CEO and Regional Executive. After the close of the sale, MUFG remains one of the largest foreign banking organizations in the U.S.
MUFG's Americas operations, including its offices in Latin America and Canada, are primarily organized under MUFG Bank, Ltd., and are focused on Global Corporate & Investment Banking, Japanese Corporate Banking, and Global Markets. Among MUFG's key products are Debt Capital Markets, Working Capital Solutions, Transaction Banking, Fixed Income Markets, and Corporate Advisory.