The PNC Financial Services Group Inc. announced on Monday it is buying BBVA USA Bancshares Inc. for $11.6 billion, confirming earlier media reports.

The transaction is estimated at 134% of BBVA USA's tangible book value and reflects a deposit premium of 3.7%, the bank said. The purchase is expected to have a 19% internal rate of return. The new combined lender will have a presence in 29 of the 30 largest United States markets, the press release stated.

"Our acquisition of BBVA USA will accelerate our growth trajectory and drive long-term shareholder value through a strategic deployment of the proceeds from the sale of our BlackRock investment," PNC CEO William Demchak said.