US: CIT Group launches $3.4B bank takeover

CIT Group announced Monday that it has reached an agreement to acquire Southern California bank OneWest Bank, a takeover worth $3.4 billion.

Reports say CIT Group will acquire the regional bank system for $2 billion in cash and the rest in stock. The acquisition will transfer OneWest from its owner, IMB Holdco, and merge the operations with CIT’s own banking unit, CIT Bank.

In a statement, CIT said that the deal will result in a 20 percent growth in profits from 2016. The deal remains subject to regulatory approval, though the companies say they have been given clearance by both boards of directors to proceed with the merger.

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