U.S. Bancorp has agreed to buy MUFG Union Bank’s core regional banking franchise from Mitsubishi UFJ Financial Group for about $8 billion in cash and stock, a deal that would boost U.S. Bank’s presence in California and other parts of the West Coast.

The purchase price includes $5.5 billion in cash and about 44 million shares of U.S. Bancorp common stock, the companies said Tuesday. MUFG will hold a minority stake of about 2.9% in U.S. Bancorp after the transaction is expected to close in the first half of 2022, they added.

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U.S. Bancorp has agreed to buy MUFG Union Bank’s core regional banking franchise from Mitsubishi UFJ Financial Group for about $8 billion in cash and stock, a deal that would boost U.S. Bank’s presence in California and other parts of the West Coast.

The purchase price includes $5.5 billion in cash and about 44 million shares of U.S. Bancorp common stock, the companies said Tuesday. MUFG will hold a minority stake of about 2.9% in U.S. Bancorp after the transaction is expected to close in the first half of 2022, they added.

The companies said they would have a combined presence in California, Washington and Oregon. Through the deal, U.S. Bank will gain more than a million consumer customers and about 190,000 small-business customers on the West Coast, in addition to about $58 billion in loans and $90 billion in deposits based on MUFG Union Bank’s June 30 balance sheet.

U.S. Bancorp, which is the parent of U.S. Bank National Association, said it expects the transaction to add about 6% to per-share earnings in 2023. The deal has an estimated internal rate of return of more than 20%, it said.

The company expects about $900 million in pretax cost savings equal to 40% of estimated non-interest expenses through a combination of real-estate consolidation, technology and systems conversion and other back-office efficiencies. U.S. Bancorp said it expects to book $1.2 billion in merger charges.

MUFG Union Bank on Sept. 20 entered into a consent order with the Office of the Comptroller of the Currency to resolve what the regulator called “the bank’s unsafe or unsound practices regarding technology and operational risk management.” MUFG Union Bank agreed to remediation changes overseen by the OCC.

U.S. Bancorp said it has incorporated regulatory concerns into all aspects of the deal process and that the order won’t restrict U.S. Bancorp’s ability to operate and grow its business.

U.S. Bank said it commits to retaining all MUFG Union Bank’s front-line branch employees.

Write to Dave Sebastian at dave.sebastian@wsj.com