Mechanics to Buy Rabobank U.S. Retail Unit for $2.1 Billion

  • Private equity firm Ford Financial owns 79% of Mechanics Bank
  • ‘There’s very little overlap in our branches’: Mechanics CEO

Photographer: Jasper Juinen/Bloomberg

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Mechanics Bank agreed to buy much of Dutch lender Rabobank Group’s U.S. operations for about $2.1 billion, bringing together two California lenders and extending the combined company’s reach throughout much of the state.

Mechanics, based in Walnut Creek, California, is gaining Rabobank’s U.S. retail, business-banking, commercial real estate, mortgage and wealth-management businesses, the companies said in a statementBloomberg Terminal Friday. The unit, Rabobank NA, has more than $13 billion in assets and 100 branches, while Mechanics has more than $6 billion and 44 branches throughout the state.