Wells Fargo Bank, part of Wells Fargo & Co. (NYSE: WFC), has entered into a definitive agreement to acquire the North American reserve-based and related diversified energy lending business of BNP Paribas SA, Paris, (Euronext Paris: BNP). Terms of the all-cash trans- action were not disclosed.
Headquartered in Houston, the BNP energy business consists of approximately 175 customer relationships, nearly $9.5 billion of loan commitments, and approximately $3.9 billion in loans outstanding. Some 90% of the portfolio is U.S.-based, with the remainder primarily located in Canada, a market of growing importance for the Wells Fargo Energy group.
Upon closing, all BNP Paribas employees who have been part of the energy business being acquired will be given an opportunity to join Wells Fargo.
The transaction, subject to regulatory approvals and other customary closing conditions, is expected to close in second-quarter 2012.
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