PARIS (Reuters – BNP Paribas (OTC) – France’s most valuable bank, according to market capitalisation. It announced it would sell the U.S. Bank of the West to Canada’s BMO Financial Group.

BNP Paribas is struggling to match larger competitors in the U.S. Retail Banking Market. The sale will help BMO strengthen its foothold in the United States.

Jean-Laurent Bonnafe, chief executive of BNP Paribas on Monday said that “This transaction is value accretive for all parties”

BNP Paribas indicated that the proceeds would be used to purchase more shares, to finance smaller bolt-on acquisitions and expand its presence in Europe.

It stated that it plans to consolidate and expand its US activities.

BNP Paribas purchased Bank of the West from the French Bank of California, in 1979. This unit was BNP Paribas’ largest outside-European business.

BMO claimed that it would acquire nearly 1.8million customers. The acquisition would allow BMO to expand its bank presence with 514 new branches as well commercial and wealth office locations in the key U.S. growth areas.

BMO stated that Bank of the West was founded in 1874 and would provide the Canadian bank with approximately $56 billion of loans, $89 billion of deposits, and an additional $21 billion of capital.