Spanish financial group BBVA has agreed to sell its US business, BBVA USA Bancshares, to PNC Financial Services Group for US$11.6 billion, the Wall Street Journal reported on Monday, November 16.
Headquartered in Houston, Texas, BBVA USA Bancshares has US$104 billion in assets under management, with banking subsidiary BBVA USA operating 637 branches in Texas, Alabama, Arizona, California, Florida, Colorado, and New Mexico. The new company will have a coast-to-coast presence in 29 of the 30 largest markets in the US, PNC announced on Monday.
The all-cash deal is the second-largest US banking acquisition since the 2008 financial crisis, according to Reuters, and values the American business at 19.7 times its 2019 earnings and 1.34 times its book value as of September 2020.
In a statement, BBVA Group Executive Chairman Carlos Torres Vila said the deal was a “very positive transaction for all sides” and enhanced the Spanish group’s “already strong financial position.”
“We will have ample flexibility to profitably deploy capital in our markets strengthening our long-term growth profile and supporting economies in the recovery phase, and to increase distributions to shareholders,” Torres Vila added.
In a significant development in the ongoing antitrust battle against Apple, a federal judge in New Jersey has designated six law firms to represent millions of consumers alleging that the tech giant has monopolized the smartphone market. The appointments were made by U.S. District Judge Julien Xavier Neals, who named Hagens Berman Sobol Shapiro, Girard Sharp, Seeger Weiss, Carella Byrne Cecchi Brody & Agnello, Susman Godfrey, and Hausfeld as lead counsel, according to Reuters.
The decision resolves a competition among the firms for leadership in the case, which represents iPhone purchasers directly affected by Apple’s alleged monopolistic practices. The appointed firms stand to earn substantial legal fees should they secure a favorable settlement or judgment against the company.
Per Reuters, the claims brought forward by consumers align with a March lawsuit filed by the U.S. Justice Department. Both suits contend that Apple has implemented measures to restrict consumer choice in the mobile device market and for associated services such as digital wallets and messaging platforms. Apple has denied the allegations and did not immediately respond to requests for comment.
Read more: Japan Adopts Ordinance to Regulate Tech Giants Apple and Google
Legal Teams with Proven Track Records
The law firms selected to lead the case have achieved significant victories in high-profile antitrust and consumer protection lawsuits. For instance, Hagens Berman has played a key role in securing a tentative $2.8 billion settlement in lawsuits against the National Collegiate Athletic Association, while Hausfeld was instrumental in obtaining a $2.7 billion settlement in antitrust litigation against Blue Cross Blue Shield. Susman Godfrey, another appointed firm, was co-lead counsel in Dominion Voting Systems’ defamation case against Fox News, which settled for $787 million.
Meanwhile, Apple’s defense team features legal heavyweights from Kirkland & Ellis and Gibson, Dunn & Crutcher.
Broader Legal Landscape
Judge Neals previously appointed a separate group of law firms in October to represent consumers who purchased iPhones through mobile carriers. That legal team includes Schneider Wallace Cottrell Konecky, Berger Montague, Lockridge Grindal Nauen, and Spector Roseman & Kodroff. Additionally, three other firms—Korein Tillery, MoloLamken, and Kellogg, Hansen, Todd, Figel & Frederick—will lead a proposed class action representing buyers of Apple Watches, Reuters reported.
Source: Reuters
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