PNC Financial will not issue shares in RBC deal
(Reuters) - PNC Financial Services Group Inc PNC.N will not issue common stock as part of its purchase of the Royal Bank of Canada's RY.TO U.S. retail bank operations, and has no plans to buy back shares in 2011, the company said on Tuesday.
The Midwestern regional bank announced plans in June to buy RBC's U.S. retail branches and card business for $3.6 billion in one of the largest U.S. bank deals this year.
Pittsburgh-based PNC Financial was unsure whether it would need to issue common stock to satisfy U.S. regulators about the capital impact of the deal.
But the Federal Reserve notified the bank that a common stock offering was not needed, and PNC Financial said in a Securities and Exchange Commission filing that the deal would be immediately accretive to earnings.
PNC Financial expects to complete the purchase of RBC's U.S. retail bank assets in the first quarter of 2012, expanding the lender's presence in the Southeast.
The deal adds roughly $25 billion in assets and 424 branches to PNC's existing operations.
Also as part of the filing, the bank said it would not buy back shares in 2011. In April, PNC received authorization from regulators to resume stock repurchases under a 25-million-share program created in 2007.
(Reporting by Joe Rauch; Editing by Lisa Von Ahn)
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