UnionBanCal to Buy Business Bank

UnionBanCal Corp., which has bank branches in California, Washington and Oregon, agreed to acquire Business Bancorp’s Business Bank of California for as much as $134.9 million.

The transaction is valued at $117.7 million to $134.9 million, depending on Business Bancorp’s shareholders’ choice to receive cash or stock and assuming UnionBanCal’s average share price is between $32 and $55 for 30 days before the closing, UnionBanCal said.

The purchase is the eighth acquisition for San Francisco-based UnionBanCal, parent of Union Bank of California, since December 2000. UnionBanCal, which is two-thirds controlled by Mitsubishi Tokyo Financial Group Inc., has been adding banks in California, and the purchase of Business Bank gives UnionBanCal 10 branches in the Inland Empire and five in the Bay Area, the company said. Business Bank has $660 million in assets, it said.

UnionBanCal announced the Business Bank acquisition in a filing with the Securities and Exchange Commission.

Shares of UnionBanCal fell 95 cents to $48.30 on the New York Stock Exchange. They are up 26% this year. San Rafael, Calif.-based Business Bancorp rose $4.80 to $29.30 on Nasdaq; its stock is up 86% this year.