It is an operation of a rare magnitude in the banking sector. BNP Paribas sells its American subsidiary Bank of the West to Bank of Montreal. The amount of the transaction is 16, 3 billion dollars. BNP Paribas is therefore reorganizing its activity in the United States.
The sale of 100% of the commercial banking business in the United States operated by Bank of the West will be paid for in cash. It should allow BNP Paribas to garner exceptional capital gains net of tax, bordering on 3 billion euros!
BNP Paribas will use part of the nearly 14.5 billion euros paid by the Bank of Montreal to buy back shares. The remainder will be spent gradually on targeted investments in innovative technologies and models. Through this, it intends to accelerate its growth, particularly in Europe.
BNP Paribas remains present in the United States
Despite everything, BNP Paribas will remain present in the United States. It keeps financing and investment activities. The sale of the establishment born in California in the 19th century, therefore does not sign a definitive break with the United States with which the French bank has had trouble in recent years.
The establishment was condemned in 2015 by the American justice to pay a fine of nearly 9 billion dollars for having bypassed the embargoes against Cuba, Iran and Sudan. BNP Paribas had pleaded guilty.
The transaction should be formally completed during the year 2022, subject to the usual conditions precedent.
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