Banco Bilbao Vizcaya Argentaria SA, Spain's second-largest bank, yesterday extended its retail banking reach in the US by agreeing to buy Texas Regional Bancshares for $2.16bn.

Under terms of the deal, Madrid-based BBVA will pay $38.90 per share for Texas Regional, a premium of about 14 per cent to the Texas bank's closing price of $34.20 on Friday. Shareholders in Texas Regional may also receive a special dividend of up to 10 cents per share.