U.S. Bank’s parent company has agreed to buy MUFG Union Bank’s consumer business for $8 billion in a move to expand its presence on the West Coast.

The acquisition will increase U.S. Bank’s loans and deposits by about 20% and improve its market share in California to 5th place from 10th. Most of MUFG’s branches are in California, Oregon and Washington.

MUFG is the main segment of the U.S. operations of Mitsubishi UFJ Financial Group, Japan’s largest bank. The deal does not include MUFG’s corporate and investment banking operations, as well as some other middle- and back-office functions.

“The acquisition of MUFG Union Bank underscores our commitment to strengthen and grow our business on the West Coast, make investments to serve customers and local communities, and enhance competition in the financial services industry,” U.S. Bancorp CEO Andy Cecere said.

Minneapolis-based U.S. Bank is the nation’s fifth-largest retail bank, with $559 billion in assets. With MFUG, it will pick up about 1 million consumer customers and 190,000 small-business customers with MUFG Union and will add $90 billion in deposits, lifting its base of $429 billion.

Until the deal was announced on Tuesday, U.S. Bancorp had been on the sidelines of a wave of regional bank mergers.

“I think a lot of investors have been waiting to see them do something,” Scott Siefers, a banking industry analyst at Piper Sandler, told the Minneapolis StarTribune. “USB is a very logical acquirer. They have a good track record, and they certainly have the valuation to do something.”

With the sale, Mitsubishi UFJ joins other huge global banks — including Spain’s BBVA and Hong Kong’s HSBC — that have decided to leave the U.S. consumer business this year amid increasing competition from America’s biggest banks.

Following the deal, MUFG “will focus on corporate and investment banking in the United States through other units and through its partnership with Morgan Stanley, which is a fifth owned by the Japanese bank,” Reuters reported.

U.S. Bancorp will purchase the retail business for $5.5 million in cash and about 44 million shares of U.S. Bancorp common stock.

Stephen Maturen via Getty Images

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