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U.S. Bancorp Takes Over Japan’s MUFG California Banking Franchise In $8 Billion Purchase 

U.S. Bancorp announced Tuesday its official agreement to acquire Mitsubishi UFJ Financial Group’s core regional banking franchise, MUFG Union Bank, in a transaction merging the two premier organizations to provide improved service across west coast communities, including Santa Clarita. 

Unanimously approved by the board of directors of both U.S. Bancorp and MUFG on Tuesday, the official transaction is expected to officially close in the first half of 2022, according to Bancorp.

Under the terms of the agreement, U.S. Bancorp agreed to purchase MUFG Union Bank for approximately $8 billion, including $5.5 billion in cash and approximately 44 million shares of U.S. Bancorp common stock, according to the agreement. 

The close of the transaction ensures a minority stake of approximately 2.9% in U.S. Bancorp for MUFG, according to the terms.

“We are very pleased to have reached this agreement which will allow MUFG to focus and increase our resources on accelerating growth in our Americas wholesale business, specifically our corporate and investment banking, global markets, Japanese corporate banking and transaction banking businesses,” said Kevin Cronin, MUFG Regional Executive for the Americas and CEO of MUFG Americas Holdings Corporation.

With the pandemic emphasizing the need for digital banking and historically low interest rates making profits hard to come by, MUFG would have had to heavily invest in new technology to keep up with the competition offering new online banking services, according to MUFG officials. 

Through the merger with MUFG and its approximately 300 west coast branches, U.S. Bank is expected to gain more than one million customers and approximately 190,000 small business owners on the west coast, significantly increasing their customer base in California, including the two locations in Santa Clarita. 

The increased scale of U.S. Bank is expected to grow as a “stronger player in these markets, which will increase competition with California’s three largest banks.”

The merger is expected to improve the U.S. Bank’s deposit position in California from 10th to 5th due to the increased customer base, according to Union Bank

U.S. Bancorp is also expected to inherit about $58 billion in loans and $90 billion in deposits as a result of the sale, according to MUFG Union Bank’s latest balance sheet from June 30. 

“We have a great deal of respect for the MUFG Union Bank team and share customer-centric and relationship-based strategies and cultures based on integrity,” said President and Chief Executive Officer Andy Cecere at U.S. Bancorp. “We look forward to welcoming MUFG Union Bank to the U.S. Bancorp family.”

The merger of U.S. Bank and MUFG is expected to provide the ability to better serve the customers of both organizations, according to Bancorp.

U.S. Bank intends to continue investing in innovative technology that meets customer needs and allows interaction with their financial institution how, when and where they choose, according to Bancorp.

Elevated by the coronavirus pandemic, 80 percent of U.S. Bank transactions are being done digitally, a trend that is expected to continuously increase. 

Industry-leading tools, like U.S. Bank’s No.1 rated mobile app among all U.S. financial institutions, allows customers to bank however they choose in a way that is simple, safe and convenient.

Bancorp intends to bring these industry-leading technologies to MUFG customers, according to Bancorp. 

“The combination will help meet the evolving needs of customers of both MUFG Union Bank and U.S. Bank by providing greater access to digital banking tools and by providing an expanded branch network,” read a statement from Bancorp. “These enhancements will improve customer choice and as a result create a stronger banking competitor across the west coast.”

Already proudly investing in their communities, the merger is also projected to enhance the U.S. Bank’s ability to commit, invest in and serve low and moderate-income communities and minority-led institutions, according to Bancorp. 

U.S. Bank invested $67 million in corporate contributions and foundation giving in 2020, including $30 million towards COVID-19 relief alongside their annual, incremental contribution of $116 million to address racial and economic inequalities. 

In addition, the bank provided $6.2 billion in capital to revitalize west coast communities, including Paycheck Protection Program (PPP) loans. 

Named one of the World’s Most Ethical Companies for seven consecutive years, U.S. Bank intends to continue providing more opportunities for customers and employees as the expansion continues. 

To learn the full details of the sale, click here.


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U.S. Bancorp Takes Over Japan’s MUFG California Banking Franchise In $8 Billion Purchase 

One comment

  1. Poor reporting as your headline reported an 8 million dollar sale when it’s 8 billion dollars. Your reporter messed up again at the beginning of his/her story. Reckless for sure.

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As Santa Clarita’s only local radio station, KHTS FM 98.1 & AM 1220 mixes in a combination of news, traffic, sports, along with your favorite adult contemporary hits by artists such as Rob Thomas, Taylor Swift, Katy Perry and Maroon 5. We are vibrant member of the Santa Clarita community. Our broadcast signal reaches all of the Santa Clarita Valley and parts of the high desert communities located in the Antelope Valley. We stream our talk shows over the web, reaching a potentially worldwide audience.