U.S. Bancorp in Minneapolis and Japan’s Mitsubishi UFJ Financial Group have pushed back the termination date for U.S. Bancorp’s proposed purchase of MUFG Union Bank.
The companies said in a press release Friday that the date was moved from Sept. 30 to Dec 31. Both parties said they remain committed to completing the transaction, which still needs regulatory approval.
The announcement comes days after the $558 billion-asset U.S. Bancorp said it was bracing to complete the acquisition several months later than previously forecast.
U.S. Bancorp executives said during a conference appearance Monday that they expect to complete the $8 billion acquisition, announced a year ago, later in the second half of 2022.
With the timing pushed back, most of the expense savings will not be realized until after next year. That’s because the targeted conversion weekend has now been moved from President’s Day in February to Memorial Day.
U.S. Bancorp, which had hoped to have three-fourths of the projected $900 million of annual savings achieved in 2023, now expects 40% to 50% of them to filter through next year.
U.S. Bancorp originally projected that it would close the deal for the $125 billion-asset MUFG Union in the first half of 2022 but that was before regulatory scrutiny of large mergers intensified. By May, the timeline had been pushed back to the second half of 2022.