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In a bid to expand its footprint, San Francisco-based Union Bank, N.A., the primary subsidiary of UnionBanCal Corporation, announced that it has signed a deal to acquire PB Capital Corporation’s commercial real estate (CRE) loan division. The acquisition, which is subject to certain closing conditions, is anticipated to be completed in the second quarter of this year.

UnionBanCal Corp. is a fully owned subsidiary of Mitsubishi UFJ Financial Group Inc. (MTU - Free Report) , which is also known as MUFG.

Headquartered in New York, PB Capital’s CRE loan unit has roughly $3.7 billion worth of loans on properties in key metropolitan areas across the U.S. Besides augmenting Union Bank’s CRE presence in the U.S., the acquisition also offers a premium CRE loan origination and servicing platform, an attractive client base, diversified assets along with an experienced management panel to Union Bank.

Management at Union Bank expects the recent strategic acquisition to be beneficial as its combines the present CRE lending platform with the expertise and diverse client relationships of PB Capital. Moreover, it will provide added impetus for additional business prospects for Union Bank.

Recently, Union Bank has been on an acquisition spree. In Oct 2012, it closed the acquisition of Atlanta-based Smartstreet, a financial services division of PNC Financial Services Group Inc. (PNC - Free Report) . Later in December, Union Bank announced the completion of the acquisition of Santa Barbara-based Pacific Capital Bancorp for $1.5 billion.

The completion of the latest acquisition will ensure the offering of a wide and improvised array of products, which will lead to industry-wide growth.

Currently, Mitsubishi UFJ carries a Zacks Rank #4 (Sell). Better performing foreign banks include Banco Bilbao Vizcaya Argentaria, S.A. (BBVA - Free Report) and Banco Macro S.A. (BMA - Free Report) . These stocks carry a Zacks Rank #1 (Strong Buy).

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