BB&T will buy SunTrust in deal worth $66 billion

Gladys Abbott
February 9, 2019

Local effects of the merger were unknown Thursday.

The banks said Thursday that the combined company will be the sixth-largest USA bank based on assets and deposits.

BB&T shareholders were pleased.

"The BB&T/SunTrust merger will open more eyes on the potential for more sizeable bank M&A to occur", Jefferies analyst Ken Usdin wrote in a client note.

"We don't think such a merger is going to be beneficial to consumers or employees", Naylor told AFP. BB&T has three banking centers - at 26 Jefferson St., at 295 Bullsboro Drive and at 190 Glenda Trace at Thomas Crossroads. Founded in 1891, it is headquartered in Atlanta, Georgia and has 1,400 branches across the southeast US. He will also hold a seat on the combined company's Board of Directors through his position as President and Chief Operating Officer and then Chief Executive Officer. The new bank, which would have its headquarters in Charlotte, N.C., will be the sixth-largest in the USA based on assets and deposits. In a CNBC interview, executives said the merger would allow them to invest more heavily in new technology demanded by customers.

He could not add much more. "These are both very clean banks. To me, this should be looked at as very positive news not only for Whiteville, but Columbus County, southeastern North Carolina and the state of North Carolina".

In a reflection of the equal contribution both banks bring to the new institution, the combined company will operate under a new name and brand, which will be determined prior to closing.

SunTrust shareholders will receive nearly 1.3 shares of BB&T for each SunTrust share they own.

Together, BB&T and SunTrust will have about $442 billion in assets, $301 billion in loans, and $324 billion in deposits, the companies said.

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The pro forma company will have approximately $442 billion in assets, $301 billion in loans, and $324 billion in deposits serving more than 10 million households in the United States, with leading market share in numerous most attractive, high-growth markets in the country.

While it may be tempting to explain the deal by pointing to the partial rollback of the postcrisis Dodd-Frank financial reform law that signed was into law last spring by President Donald Trump, the bulk of that law's measures were targeted at banks far smaller than the one that will be created by this deal, if it is approved by regulators.

The combined company will keep a presence in Winston-Salem, North Carolina, where BB&T is based. It will keep a wholesale banking center in Atlanta, where SunTrust has its headquarters.

The two banks have always been considered natural partners and advisers said they do not expect another bank to make a bid.

Both banks have a significant presence in Florida and Polk County.

Royal Bank of Canada advised BB&T, while Goldman Sachs Group Inc. worked with SunTrust.

The company changed its name in 1913 to Branch Banking and Trust Company, or BB&T. After that, he will serve as executive chairman for six months.

The two companies called it a merger of equals, valued at $66 billion.

The transaction will provide an estimated $1.6 billion of synergies by 2022, the press release said.

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