Wells Fargo to Buy Energy Lending Business
BNP’s North American business is primarily concentrated in the United States, reported The New York Times. The deal is expected to close in the second quarter of 2012, pending on regulatory approvals and following customary closing conditions.
The Houston, Texas-based energy business holds nearly $9.5 billion worth of loan commitments and about $3.9 billion in loans that have been lent out.
The price Wells Fargo paid and other terms of the deal were not disclosed.
BNP and other banks hurting from the European debt crisis are trying to reduce their lending commitments, the Times reported.
The transaction will strengthen Wells Fargo's energy banking business. Wells Fargo, which emerged as one of the United States' stronger banks following the financial crisis, reported a 20 percent gain in quarterly profit last month.