Summary
PNC Financial Services Group, Inc. (PNC) has announced a significant strategic move through an Agreement and Plan of Merger to acquire Riggs National Corporation (Riggs). This acquisition, unanimously approved by both companies' Boards of Directors, is set to combine Riggs into PNC, with Riggs Bank, N.A. merging into PNC Bank, National Association. The transaction is designed to expand PNC's presence and capabilities in the financial services sector. The merger consideration values Riggs common stock at approximately $24.25 per share, based on PNC's stock price prior to the announcement. The deal involves a mix of PNC common stock and cash, with the specific allocation dependent on PNC's stock price closer to the closing date. Riggs shareholders will have the option to choose between receiving cash or PNC stock, subject to proration. Additionally, Riggs stock options with an estimated in-the-money value of $66 million will be cashed out.
Key Highlights
- 1PNC Financial Services Group, Inc. (PNC) to acquire Riggs National Corporation (Riggs) through a merger agreement.
- 2Riggs will merge into PNC, and Riggs Bank, N.A. will merge into PNC Bank, National Association.
- 3The transaction values each share of Riggs common stock at approximately $24.25.
- 4Merger consideration comprises a mix of PNC common stock and $321 million in cash, subject to adjustments.
- 5Riggs shareholders can elect to receive merger consideration in either PNC shares or cash, subject to proration.
- 6Riggs stock options with an aggregate in-the-money value of approximately $66 million will be cashed out.
- 7The agreement has received unanimous approval from the Boards of Directors of both PNC and Riggs.