Wells Fargo To Buy A BNP Paribas Energy Lending Business
02/21/2012 | 05:16pm
Wells Fargo & Co. (>> Wells Fargo & Company) said it will acquire BNP Paribas S.A.'s (>> BNP PARIBAS) North American reserve-based and diversified energy lending business in a deal that will expand Wells Fargo's energy-banking business.
Terms of the all-cash deal, which is expected to close in the second quarter, were not disclosed.
BNP's energy business is based in Houston and has approximately 175 customer relationships, nearly $9.5 billion of loan commitments and about $3.9 billion in loans outstanding. Nearly all of the portfolio is U.S.-based, with the remainder primarily located in Canada.
Last month, Wells Fargo reported its fourth-quarter earnings jumped 20% as the banking bellwether continued to increase commercial loans and saw a surge in mortgage creation during the last three months of the year.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287; nathalie.tadena@dowjones.com
