PNC to buy RBC?s retail bank operations

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It is learnt that PNC Financial Services Group Inc has agreed to buy Royal Bank of Canada?s US retail operation for a whopping $3.45 billion. This deal will expand PNC to the US markets by adding 420 branches in markets such as Florida, Alabama and Georgia. The agreed purchase price represents a $112 million discount to the book value of the unit. The deal will be officially announced today.

PNC has given RBC the option of $1 billion in stock and the rest in cash for the deal, but the exact details will be revealed later this year. It is also revealed that the deal will be sealed by the first quarter of 2012.

RBC and PNC were not immediately available for comment.

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