U.S. Bancorp to Buy Bank of America's Trust Division
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U.S. Bancorp (USB)
agreed to pay as much as $35 million in cash for Bank of America's (BAC)
securitization trust administration units in the U.S. and Europe. The deal is part of the U.S. Bank parent company's efforts to expands its corporate trust business.
The transaction, which is expected to close by year-end, will give U.S. Bancorp another $10 billion in deposits while boosting annual revenue
by about $10 million, the company said in a statement
Monday. The new unit will also increase U.S. Bancorp's earnings starting in 2012.
With the acquisition, U.S. Bancorp will leapfrog Deutsche Bank (DB
) and the Bank of New York Mellon (BK
) and become the largest U.S. structured-finance institution, the company said. U.S. Bancorp will oversee more than $1.6 trillion in structured-finance assets, giving it a U.S. market share of about 30% for that particular industry.
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