Categories AlphaGraphs, U.S. Markets News

Will the BB&T-SunTrust merger pave the way for more deals?

BB&T Corporation (BBT) and SunTrust Banks Inc. (STI) have agreed to join together in an all-stock merger of equals valued at approx. $66 billion. The merger is expected to close in the fourth quarter of 2019, subject to approvals and conditions.

Under the terms, SunTrust shareholders will receive 1.295 shares of BB&T for each SunTrust share they own. Approx. 57% of the combined company will be owned by BB&T shareholders and around 43% will be held by SunTrust shareholders.

The combined entity will become the sixth largest bank in the US in terms of assets and deposits, and will have around $442 billion in assets, $301 billion in loans and $324 billion in deposits. The combined company will operate under a new name and brand, and will be headquartered in Charlotte, North Carolina. The transaction is expected to deliver around $1.6 billion in annual net cost synergies by 2022.

BB&T and SunTrust merger

Kelly S. King, Chairman and CEO of BB&T, will serve as the Chairman and CEO of the combined company till September 12, 2021. He will serve on the Board of Directors till the end of 2023. William H. Rogers Jr., CEO of SunTrust, will serve as President and COO of the combined company until September 12, 2021, after which he will take over as CEO. In March, 2022, he will become Chairman and CEO of the combined company.

The merger is the biggest one to take place since the financial crisis in 2008, and several analysts believe more consolidation can be expected in the banking sector soon. Currently, the top three banks in terms of assets are JPMorgan Chase (JPM), Bank of America (BAC) and Citigroup (C). Other smaller players will need to join forces to catch up with them.

Moreover, investments in areas like technology can lead to higher expenses and forming collaborations with peers can help lower costs. Shares of BB&T were up 2.6% in afternoon trade while SunTrust’s stock soared at 8.8%.

 

We’re on Apple News! Follow us to receive the latest stock market, earnings and financial news at your fingertips.

Most Popular

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Comments

  1. Pingback: fue
  2. Pingback: metanail serum pro
  3. Pingback: Fiverr Earn
  4. Pingback: fiverrearn.com
  5. Pingback: fiverrearn.com
  6. Pingback: fiverrearn.com
  7. Pingback: fiverrearn.com
  8. Pingback: flatbed broker
  9. Pingback: weather tomorrow
  10. Pingback: fiverrearn.com
  11. Pingback: french bulldog
  12. Pingback: fiverrearn.com
  13. Pingback: fiverrearn.com
  14. Pingback: fluffy frenchie
  15. Pingback: cavapoos
  16. Pingback: micro frenchies
  17. Pingback: future university
  18. Pingback: wix login
  19. Pingback: bulldogs puppy
  20. Pingback: fue
  21. Pingback: lean manufacturing
  22. Pingback: Warranty
  23. Pingback: Piano disposal
  24. Pingback: FUE
  25. Pingback: FUE
  26. Pingback: FUE
  27. Pingback: FUE
  28. Pingback: MB Removals
  29. Pingback: Safe moving
  30. Pingback: Moving trucks
  31. Pingback: Classic Books 500
  32. Pingback: FiverrEarn
  33. Pingback: Fiverr
  34. Pingback: Speaker
  35. Pingback: Media
  36. Pingback: FiverrEarn
  37. Pingback: FiverrEarn
  38. Pingback: pupuk
  39. Pingback: pupuk organik
  40. Pingback: partners
  41. Pingback: Social Justice
  42. Pingback: bulldog frances
  43. Pingback: FiverrEarn
  44. Pingback: FiverrEarn
  45. Pingback: FiverrEarn
  46. Pingback: FiverrEarn
  47. Pingback: FiverrEarn
  48. Pingback: french bulldog
  49. Pingback: FiverrEarn
  50. Pingback: FiverrEarn
  51. Pingback: FiverrEarn
  52. Pingback: FiverrEarn
  53. Pingback: FiverrEarn
  54. Pingback: FiverrEarn
  55. Pingback: FiverrEarn
  56. Pingback: Bilona
  57. Pingback: wix website
  58. Pingback: email
  59. Pingback: Slot Online
  60. Pingback: FiverrEarn
  61. Pingback: FiverrEarn
  62. Pingback: FiverrEarn
  63. Pingback: cheap sex cams
  64. Pingback: fullersears.com
  65. Pingback: live sex cams
  66. Pingback: live sex cams
  67. Pingback: live sex cams
  68. Pingback: frt trigger
  69. Pingback: web development
  70. Pingback: 늑대닷컴
  71. Pingback: Judi slot online
  72. Pingback: nang sydney
  73. Pingback: allgame
  74. Pingback: 918kiss
  75. Pingback: หวย24
  76. Pingback: pg slot
  77. Pingback: AI Attorney
  78. Pingback: Raahe Guide
  79. Pingback: megagame
  80. Pingback: evisa
  81. Pingback: sicarios
  82. Pingback: itsMasum.Com
  83. Pingback: itsMasum.Com
  84. Pingback: Skywhip tanks
Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top