San Francisco-based UnionBanCal Corp. and its primary subsidiary, Union Bank, announced the completion of the acquisition of Santa Barbara-based Pacific Capital Bancorp (PCBC). The merger, announced In March 2012, was consummated for $1.5 billion.
UnionBanCal Corp. is a fully owned subsidiary of Mitsubishi UFJ Financial Group Inc. (MTU), which is also known as MUFG. Moreover, Union Bank is a leader in providing financial services to individuals, small businesses, middle-market companies and major corporations. With the aim of expanding its geographic footprint, the bank decided on entering the abovementioned deal.
Pacific Capital Bancorp, the holding company for Santa Barbara Bank & Trust, National Association, provides commercial and consumer banking services to households, professionals, and businesses. After receiving regulatory nod in November for the transaction, Santa Barbara Bank & Trust, N.A. and Union Bank will be merged into a single entity on December 3, 2012.
As per the terms of the deal, as of September 30, 2012, Union Bank acquired $3.7 billion in loans held for investment and $4.7 billion in deposits. Moreover, each outstanding share of common stock of PCBC is converted into the right to receive $46.00 per share in cash, excluding interest.
With the acquisition of PCBC and its primary subsidiary - Santa Barbara Bank & Trust, N.A., Union Bank enhances its branch network by 45 branches. Moreover, this merger would expand Union Bank’s presence to significant areas of the Central Coast.
Further, Union Bank’s ability to provide banking services to its clients with the assistance of its deep-rooted knowledge and excellence will be strengthened. PCBC’s solid base of core deposits would enable Union Bank to gain instant and long-term benefits.
The completion of the merger will combine PCBC and Union Bank’s banking services and would help serve the widespread client portfolio across the United States. The combined entity would ensure the offering of a wide and improvised array of products, which will lead to industry-wide growth.
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