These are the American banks BB & T and SunTrust. After the merger, the merged bank will receive a new name and will become the sixth commercial bank in the US in terms of assets
Photo: Ty Wright / Bloomberg
American financial holding company BB & T Corp. agreed to buy US bank SunTrust Banks Inc., Bloomberg reports, citing a joint statement by both companies. The amount of the transaction, according to agency estimates, will be $ 28 billion, which will be the world's largest bank merger over the past decade.
The report said that the shareholders of BB & T will own 57% of the combined company. SunTrust shareholders will receive 1,295 BB & T shares for each SunTrust share they own. Based on the quotes at the close of trading on Wednesday, BB & T will pay $ 28.1 billion for its share of SunTrust, the agency calculated.
“The merger provides the scale necessary for competition and victory in the rapidly developing world of financial services,” said BB & T CEO Kelly King in a joint statement, who will retain this post in the new company. King will work as CEO of the combined company until September 12, 2021, then the current SunTrust CEO William Rogers will replace her in this position.
Under the terms of the deal, a new bank with a new name and a new headquarters in Charlotte, North Carolina, will be formed after the merger. This will be the sixth largest commercial bank in the US in terms of assets, crowding out PNC Financial Services Group Inc. from this line, the agency said.
The merged bank, whose name will be announced later, will have almost 60 thousand employees and about $ 440 billion of assets.
SunTrust shares after a joint statement of companies about the impending merger increased by 11%, BB & T – by 5.1%, the agency notes.