Jan. 6 (Bloomberg) -- U.S. Bancorp, the biggest bank in the Midwestern U.S., agreed to buy the Chicago branches of Citizens Financial Group Inc., according to a person with direct knowledge of the transaction.
The price is equivalent to twice the target’s book value, or about $600 million, said the person, who asked for anonymity because the sale isn’t public yet. The deal is scheduled to be announced tomorrow before U.S. markets open, the person said.
Bloomberg News reported on Nov. 19 that Minneapolis-based U.S. Bancorp was in talks with Citizens, the local subsidiary of Royal Bank of Scotland Group Plc, about buying 100 branches.
A sale would boost U.S. Bancorp’s market share of Chicago’s deposits to seventh from 12th, Federal Reserve data show. The company said last month it has 3,088 offices in 25 states.
Citizens, based in Providence, Rhode Island, is working with Bank of America Corp. on the branch sale. Spokesmen for Citizens, U.S. Bancorp and Bank of America said their companies had comment.
Crain’s Chicago Business reported the sale earlier today.
--Editors: Rick Green, Peter Eichenbaum