U.S. Bancorp in Minneapolis now expects its pending purchase of MUFG Union Bank to close several months later than previously forecast.
Executives at the $558 billion-asset U.S. Bancorp 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.