- SunTrust BanksandBB&Thave agreed to merge in a deal valued at $66 billion, forming the sixth-largest US bank.
- The transaction pays SunTrust shareholders 1.295 BB&T shares for each SunTrust share they own.
- BB&T agreed to pay a roughly 7% premium for SunTrust, according to Bloomberg data.
- WatchSunTrustandBB&Ttrade live.
The deal pays SunTrust shareholders 1.295 BB&T shares for each SunTrust share they own, according to ajoint statementreleased Thursday morning. BB&T shareholders will own about 57% of the combined company. Bloomberg data shows the deal amounts to BB&T paying $28.1 billion for SunTrust — a roughly 7% premium to Wednesday’s closing price.
“This is a true merger of equals, combining the best of both companies to create the premier financial institution of the future,” BB&T’s chairman and CEO, Kelly King, said. “It’s an extraordinarily attractive financial proposition that provides the scale needed to compete and win in the rapidly evolving world of financial services.
The transaction will provide an estimated $1.6 billion of synergies by 2022, the press release said. The combined company will operate under a new name and will be headquartered in Charlotte, North Carolina, but maintain large operations in Atlanta and Winston-Salem, North Carolina — the locations of the two companies’ current headquarters.
Once the merger is complete, King will maintain his roles at the new company until September 12, 2021, when he will become executive chairman until March 12, 2022, the statement said. He will remain on the board of directors until the end of 2023.
SunTrust’s chairman and CEO, William Rogers, will take on the roles of president and chief operating officer at the new company and then become CEO when King transitions to executive chairman, according to the statement.
The deal is expected to close in the fourth quarter of 2019.
SunTrust shares were up 8.5% following the news, and BB&T’s were higher by 4.8%.