U.S. Bancorp, parent of US Bank, will acquire MUFG Union Bank for about $8 billion, the companies announced Tuesday.

With the deal, Minneapolis-based U.S. Bancorp will pay $5.5 billion in cash and issue 44 million shares of its common stock, giving the Japanese parent of MUFG Union Bank a 2.9 percent stake in the company.


In return, U.S. Bancorp will gain more than 1 million consumer customers and about 190,000 small business customers on the West Coast. The sale excludes Union Bank's corporate and investment banking.


In the Valley region, both institutions have a large number of locations, often in the same neighborhoods.


US Bank has retail branches in Agoura Hills, Burbank, Calabasas, Camarillo, Canoga Park, Encino, Glendale, Lancaster, Newbury Park, North Hollywood, Northridge, Palmdale, Panorama City, Reseda, Santa Clarita, Sherman Oaks, Simi Valley, Stevenson Ranch, Sylmar, Tarzana, Thousand Oaks, Toluca Lake, Valencia, Van Nuys, West Hills, Westlake Village and Woodland Hills.


Union Bank maintains branch locations in Agoura Hills, Burbank, Camarillo, Chatsworth, Encino, Fillmore, Glendale, Moorpark, Newhall, Northridge, Palmdale, Panorama City, Porter Ranch, Sherman Oaks, Simi Valley Studio City, Thousand Oaks, Toluca Lake, Valencia and Warner Center.


“The acquisition of MUFG Union Bank underscores our commitment to strengthen and grow our business on the West Coast, make investments to serve customers and local communities and enhance competition in the financial-services industry,” Andy Cecere, U.S. Bancorp’s chief executive officer, said in the statement.