PNC To Acquire RBC Unit For $3.45B

PNC Financial Services Group Inc PNC announced its plans to acquire RBC Bank (USA), the US retail banking subsidiary of Royal Bank of Canada RY, for $3.45 billion, or $112 million discount to tangible book value. PNC projects the deal to be accretive to earnings by 2013, or sooner depending on the amount paid in stock. The transaction has been approved by the boards of directors of both companies and is likely to close in March 2012. "The addition of RBC Bank provides PNC a great opportunity to enter attractive southeast markets in a way that will create value for our shareholders," said James E. Rohr, PNC's chairman and chief executive officer. PNC shares dropped 2.82% to close at $57.79 on Friday, while RY shares gained 1.46% to close at $55.54 on Friday. Read more from Benzinga's Company news.