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Monday, June 20, 2011

PNC to purchase RBC's U.S. retail unit for $3.45 bln, (NYSE: PNC), (TSE: RY)

PNC Financial Services Group Inc (PNC.N) will purchase Royal Bank of Canada's (RY.TO) U.S. retail bank operations for $3.45 billion in cash and stock, allowing PNC to expand in the U.S. Southeast. The deal, announced by the banks on Monday, helps RBC offload a money-losing business and comes in contrast to steps by its Canadian rivals to expand in the United States. RBC Bank (USA) has $25 billion of assets and 424 branches in six U.S. states: Alabama, Florida, Georgia, North Carolina, South Carolina and Virginia. As of March 31, PNC had 2,446 branches and $259.38 billion of assets. RBC said it will continue to provide banking services to RBC Wealth Management and RBC Capital Markets in the United States.

The PNC Financial Services Group, Inc. (PNC) is a diversified financial services company in the United States. Shares of PNC remained unchanged at $57.79. In the past year, the shares have traded as low as $49.43 and as high as $65.19. On average, 3443380 shares of PNC exchange hands on a given day and today's volume is recorded at 1000.

Royal Bank of Canada (RBC) is a diversified financial services company and provides personal and commercial banking, wealth management services, insurance, corporate and investment banking, and transaction processing services. Shares of RY remained unchanged at $55.54. In the past year, the shares have traded as low as $46.04 and as high as $63.59. On average, 687925 shares of RY exchange hands on a given day and today's volume is recorded at 0.



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