UPDATE: Fed Clears PNC Plan To Buy Royal Bank Of Canada's US Retail Bank

The U.S. Federal Reserve announced late Monday it has approved PNC Financial Services Group Inc.'s (PNC) plan to acquire Royal Bank of Canada's (RY, RY.T) U.S. retail-banking unit.

Pittsburgh-based PNC announced in June that it was buying the banking unit, RBC Bank, for $3.45 billion.

The proposal gives PNC, which beat out rival regional bank BB&T Corp. (BBT) for the RBC operations, a chance to expand more in the southeast. Before the deal, the bank didn't have much of a presence outside of Florida.

"The addition of RBC Bank provides PNC a great opportunity to enter attractive southeast markets in a way that will create value for our shareholders," PNC Chief Executive James Rohr said in the company's June announcement on the deal.

Royal Bank of Canada bought the U.S. retail-banking unit now known as RBC Bank in 2001 for $2.3 billion and expanded it from North Carolina and Virginia to Florida and Georgia. The bank now has more than 400 bank branches in southeast states.

-By Maya Jackson Randall, Dow Jones Newswires; 202-862-6687, maya.jackson-randall@dowjones.com

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