US Bancorp has confirmed that it is has agreed to buy the Chicago branches of Royal Bank of Scotland’s (RBS) subsidiary Charter One for $315bn.
The deal to acquire the 94 branches and 800 employees of the bank, part of RBS Citizens, was initially leaked by an anonymous source before being confirmed on 7 January.
US Bank will also acquire around $1.1bn loans and $5.3bn deposits on top of its current $6bn deposits, almost doubling its market share of deposits in Chicago.
John Elmore, vice chairman of community banking and branch delivery for US Bank, said: "This transaction will double our market share in Chicago, giving us a great opportunity to not only deepen existing customer relationships, but a chance to serve new customers with our extensive mix of products and services."
The deal is one of the largest banking acquisitions in the US for the last few months and the second largest in Chicago.
In July 2013 Chicago’s Taylor Capital was sold to MB Financial for $680m and the deal is expected to be completed in the first half of 2014.
Marsha Cruzan, Chicago market president for US Bank, said: "Chicago is a vibrant and important market for US Bank.
"We’ve worked hard to grow our presence here over the past five years and this latest acquisition strengthens our position as a top bank in the Chicago area."
A partial IPO for the rest of RBS Citizens is due to take place later this year.
At the end of 2013, US Bank was the fourth biggest bank by branches in the US with 3,088.
Wells Fargo was the biggest by 6,297, followed by Chase and Bank of America with 5,697 and 5,401 respectively and PNC was in fifth place with 2,948 branches.
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