U.S. Bank has received all required U.S. regulatory approvals to complete its previously announced acquisition of MUFG Union Bank’s core regional banking franchise from Mitsubishi UFJ Financial Group (MUFG), including approvals from the board of governors of the Federal Reserve System and the Office of the Comptroller of the Currency. In addition, MUFG Union Bank received approval from the Federal Deposit Insurance Corporation. The transaction remains subject to approval from Japanese regulators.
The acquisition is expected to close before the end of 2022, subject to the satisfaction of closing conditions set forth in the agreement between the banks.
“We are pleased to have received U.S. regulatory approval,” Andy Cecere, chairman, president and CEO of U.S. Bank, said. “We believe that this acquisition is good for customers, good for the communities that MUFG Union Bank has served and good for employees. It allows us to make investments to serve customers and enhance competition on the West Coast. We share many common values with MUFG Union Bank and we look forward to having their employees and customers join the U.S. Bancorp family.”
With the acquisition, U.S. Bank will gain more than 1 million consumer customers and about 190,000 small business customers on the West Coast. The combination will improve U.S. Bank’s deposit position in California from 10th to fifth.
In May, U.S. Bank announced a five-year, $100 billion community benefits plan as part of the MUFG Union Bank acquisition that will support the ability of low- and moderate-income communities and communities of color to access capital and build wealth. Sixty percent of the total commitments will support work in California, the state most impacted by the acquisition.
After closing, U.S. Bank will provide MUFG Union Bank customers with information regarding the conversion of their accounts. Until conversion, customers will continue to be served by their respective branches, websites and mobile apps.