San Francisco-based Union Bank of California has agreed to sell its retirement recordkeeping unit to Prudential Retirement.
The bank, a subsidiary of UnionBanCal Corp. (UB), concluded that it would be unable to compete effectively in a rapidly consolidating industry and could not make needed investments in technology, officials said in a statement.
At closing, UnionBanCal expects to record an after-tax gain of approximately $59 million, or $0.43 per share. In addition, the company is expected to record divestiture-related charges, primarily personnel-related, of approximately $7 million after-tax, or $0.05 per share, in the fourth quarter.
