Commercial bank Citibanks is buying a stake in the nation’s second-largest consumer bank for $3.2 billion in cash and stock.
The purchase of the U.S. Bank branch and the acquisition of the bank’s assets will boost CitibANK’s corporate balance sheet to $4.6 trillion, according to Citigroup analysts.
The transaction comes after years of talks that led to the merger in 2014.
Citi had previously offered to buy Citibanked in a deal worth $4 billion in 2016.
The Citibanking transaction comes at a time when many banks are in a regulatory tailspin as regulators grapple with the fallout from the crisis and regulatory oversight.
The deal includes a $6.5 billion loan from the Federal Deposit Insurance Corporation (FDIC), the largest loan the bank has received, and a $1.5 trillion line of credit, Citigroup said.
Citigroup said the bank will maintain a presence in the U, U.K., Germany and Ireland.
Citi said the transaction will help expand its customer base, improve financial performance and improve its profitability, while providing a strong foundation for the company’s strategic growth.