SunTrust Banks and BB & T Corp. have announced that the Boards of Directors of both companies unanimously agreed to merge the two financial services firms into a merger of all shares with a value of approximately $ 66 billion.

The combined company will be the sixth largest bank in the US based on assets and deposits.

The pro forma company will have approximately $ 442 billion in assets, $ 301 billion in loans and $ 324 billion in deposits that serve more than 10 million households in the United States.

The combined company will operate under a new name and a new brand, which will be determined prior to closing.

A new head office will be established in Charlotte, N.C., including an innovation and technology center to drive digital transformation.

Under the agreement, BB & T shareholders will own approximately 57 percent and SunTrust shareholders will own approximately 43 percent of the combined business.

Charlotte-based BB & T operates more than 1,800 financial centers in 15 states and Washington, D.C.

SunTrust is headquartered in Atlanta and has two business segments: consumer and wholesale. Its main subsidiary, SunTrust Bank, has a branch and ATM network in the Southeast and Mid-Atlantic states along with 24-hour digital access. Certain business lines serve national, business, business and institutional customers

The company said that the combined company will use its complementary activities to generate additional revenue opportunities through the banking and insurance activities of BB & T and SunTrust & # 39; s business and investment banking on the medium market and the digital consumer loan platform. .

The wedding is expected to generate approximately USD 1.6 billion in net cost synergies by 2022. The main sources of cost savings are expected to be facilities, information technology / systems, shared services, retail banking and external suppliers.

The board of directors and the management team of the combined company will be equally divided between the two institutions.

Kelly S. King, chairman and CEO of BB & T and her bank subsidiary, will serve as chairman and CEO of the combined company and her banking subsidiary until 12 September 2021, after which he will serve as executive chairman of both entities until March. 12, 2022. King remains a member of the board of directors of the combined company until the end of 2023.

William H. Rogers, Jr., chairman and CEO of SunTrust will serve as president and chief operating officer of the combined company and its banking subsidiary until September 12, 2021, after which he will become the CEO of the combined company and its bank subsidiary. On 12 March 2022, Rogers will also become chairman and CEO of the combined company and its bank subsidiary.

The board of directors of the combined company will consist of members equally divided between BB & T and current directors of SunTrust.

The merger is expected to be completed in the fourth quarter of 2019, subject to the satisfaction of customary closing conditions, including the receipt of customary approvals by the regulators and approval by the shareholders of each company.

BB & T Insurance Holdings, a wholly owned subsidiary of BB & T Corp., is the fifth largest insurance broker. BB & T Insurance Holdings has 200 offices through subsidiaries BB & T Insurance Services, BB & T Insurance Services from California, McGriff, Seibels & Williams, CRC Insurance Services, Crump Life Insurance Services and AmRisc. Last year, B & T Insurance Holdings agreed to the acquisition of Regions Insurance Group, another banking insurance broker, of Regions Financial Corp. Regions Insurance also has a wholesale insurance division, Insurisk, based in Little Rock, Arkansas, which accounts for about eight percent of its business. Insurisk is also included in the sale.

RBC Capital Markets served as financial advisor and Wachtell, Lipton, Rosen & Katz served as legal advisor to BB & T in this transaction. Goldman Sachs and SunTrust Robinson Humphrey served as financial advisers and Sullivan & Cromwell served as SunTrust's legal advisor for this transaction.

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