The combined company will become the sixth-largest US bank
BB&T Corporation and SunTrust Banks have received the regulatory approvals they need to go ahead with their planned $66 billion merger, the companies have announced.
The banks received approval from the Federal Reserve and the Federal Deposit Insurance Corporation to go ahead with the merger. The combined company, which will operate under the name Truist Financial Corporation, will be the sixth-largest US commercial bank, serving about 10 million households and a full range of business clients, BB&T said.
The regulatory process also included approvals from the Georgia Department of Banking and the North Carolina Commissioner of Banks.
The banks announced the merger in February, but ran into a roadblock when the Justice Department raised antitrust concerns. The Justice Department okayed the merger after the banks agreed to divest nearly 30 branches.
BB&T and SunTrust expect to complete the merger Dec. 6. BB&T common shares will become Truist common shares, and SunTrust common shareholders will receive 1.295 Trusit common shares for each share of SunTrust common stock they own at closing.
“We are pleased to have received regulatory approval to merge two strong companies with complementary business models and a high level of cultural alignment,” said BB&T Chairman and CEO Kelly King, who will serve as chairman and CEO of Truist.
“We will build upon our mission- and purpose-driven cultures and work to ensure a positive experience for our clients,” said SunTrust Chairman and CEO Bill Rogers, who will serve as president and chief operating officer of Truist prior to succeeding King as CEO in September 2021. “Following months of thoughtful collaborative planning, we are prepared to begin a successful integration.”
The banks’ clients will continue to be served through their respective BB&T or SunTrust branches as systems are integrated, BB&T said. The conversion to the Truist brand will take place over the next two years.
