Citibanks and Wells Firms are buying commercial banks Citi & Co. and Pnc Bank.
The companies have agreed to buy the banks assets and assets of their respective subsidiaries, the companies said in a joint statement on Monday.
Citi and PN Bank are expected to be merged into the company by the end of the year.
Wells Fargo will continue to operate as a separate entity.
The purchase comes amid increasing competition in the banking sector and in the United States, where banks are increasingly becoming more integrated with financial services and other businesses.
Wells Bankers Association President and CEO, Jim Cramer, told CNBC in February that the merger would provide an alternative to traditional bank mergers.
“You’ve got a bank that is going to be a giant in a very competitive marketplace, and it’s going to have a very big impact on the country.
So, I think that merger is a smart move for us and the country.”
Wells Fargo is the second-largest bank in the U.S. by assets and a subsidiary of Bank of America Corp. It operates a number of branches in the states of California, Florida, Nevada and Texas.
PNC Bank is a bank unit of the PNC Financial Services Group and is headquartered in Philadelphia.
It provides financial services in the area of residential mortgages, commercial mortgage-backed securities and other consumer and commercial loans.
According to the company, the transaction is expected to close in the first half of 2019.