BB&T and SunTrust have agreed to merge to a brand new and as-yet-unnamed bank, in an all-stock deal valued at roughly $66 billion.
The new bank, which would have its own headquarters in Charlotte, N.C., will function as sixth-largest in the U.S. according to deposits and assets.
Both of the banks are calling it a”merger of equals.” However, the price is weighted toward BB&T, whose shareholders will have around 57 percent of their new bank compared with SunTrust investors’ 43 percent.
BB&T Chairman and CEO Kelly S. King will conduct those very same roles from the new bank until 2021 — when current SunTrust Chairman and CEO William H. Rogers Jr. will take over as CEO. The new company’s board will be evenly split between the banks’ current boards of supervisors.
“This really is a true merger of equals, combining the best of both companies,” King said in a news release about the strategy, which he said would bring the banks brand new scale that will help them”compete and win in the fast evolving world of financial services”
The merger joins two banks that have grown along with the bustling Southeast and Mid-Atlantic regions where they started. BB&T has over 1,800 financial facilities in 15 states and Washington; SunTrust has an extensive network of branches, along with investment and corporate banking operations.
When both European banks have been united, the new company will serve more than 10 million U.S. families, with roughly $442 billion in funds, $301 billion in loans and $324 billion in deposits, according to a joint news release detailing the strategy.
The deal requires both banks to depart their origins behind. BB&T has been established in Winston-Salem, N.C., while SunTrust is based in Atlanta. The banks say they will continue to have”significant investment and operations” in their hometowns.
The merger is anticipated to close in the fourth quarter of 2019, the banks say, subject to approval from authorities as well as their shareholders.
The joint bank name and manufacturer”will be decided prior to closing,” the firms stated.