BNP Paribas will gain enough money to invest through this sale. Bank would like to use the proceeds to finance more share repurchases and to finance relatively small quick acquisitions and to further develop its presence in Europe. The acquisition will be worth approximately $ 16.3 billion.
The French bank bought the Bank of the West in 1979 and subsequently merged it with the Bank of California. It was the largest company for BNP Paribas outside of Europe. For BMO, this agreement represents a positive change. The acquisition is expected to secure nearly 1.8 million customers and further expand its banking presence through 514 additional subsidiaries and commercial and investment offices in key US growth markets.
Performance of BNP Paribas SA ADR (Source: Investing.com)