BNP Paribas will sell its Bank of the West unit to BMO Financial Group for US$16.3 billion in cash, the two companies announced Monday. Expected to close in 2022, the sale will mark BNP Paribas’ exit from U.S. retail and commercial banking, including an active commercial real estate platform. 

On closing, the acquisition will bring nearly 1.8 million customers to BMO and will further extend its banking presence through 514 additional branches and commercial and wealth offices in key U.S. growth markets. Approximately 70% of Bank of the West’s deposits are in California. 

“With the strength of our performance and our integrated North American foundation, we have never been better positioned to take this next step in our growth strategy and to deliver for the new customers and colleagues we look forward to welcoming to BMO,” said BMO’s CEO, Darryl White. “This acquisition will add meaningful scale, expansion in attractive markets, and capabilities that will enable us to drive greater growth, returns and efficiencies.” 

For its part, BNP Paribas said it benefits from a long-term presence in the U.S., notably a strong corporate & institutional banking franchise. The sale won’t affect these businesses, the company said. 

Pictured: A Bank of the West branch in Gillette, WY. Photo credit: Wikipedia.