BB&T, SunTrust to merge, creating the sixth-largest U.S. bank
The merger will be the largest bank deal since the financial crisis
Covering credit scores, personal finance and breaking news
BB&T will buy SunTrust Banks for approximately $28 billion, the companies announced Feb. 7.
The all-stock deal – slated to happen in the fourth quarter of 2019 – will make the new bank (yet to be named) the sixth largest in the U.S. It is the largest bank merger since the financial crisis of 2007-2009.
It is unclear what ramifications – if any – are in store for the banks’ credit card holders at this point.
Top execs speak out
"This is a true merger of equals, combining the best of both companies to create the premier financial institution of the future," BB&T Chairman and CEO Kelly S. King said in a press release. "It's an extraordinarily attractive financial proposition that provides the scale needed to compete and win in the rapidly evolving world of financial services.”
William H. Rogers Jr., SunTrust’s chairman and CEO, said the merger would “achieve susbstantially more for clients, teammates, associates, communities and shareholders” than the two firms could separately.
King will remain CEO of the combined company until Sept. 12, 2021, when SunTrust's Rogers will take the reins.
See related: Credit card trends to watch for in 2019
The merger will likely generate an annual cost savings of approximately $1.6 billion by 2022, according to the two companies. When the deal is complete, BB&T will own the majority of the company – 57 percent – and SunTrust will own 43 percent.
The new bank will serve more than 10 million households in eight states, and its corporate headquarters will located in Charlotte, North Carolina.
The merger comes at time in which the Trump Administration is striving to ease bank regulations that stemmed from the financial crisis, which previously made it difficult for banks to expand.
In addition, the lowered corporate tax that resulted from last year’s U.S. tax law changes has made the merger viable.
- Apple and Goldman Sachs set to launch new credit card in the spring – Apple and Goldman Sachs will launch a new joint credit card this spring, according to media reports. It will be linked to new personal finance tools on the iPhone ...
- Poll: 56% of balance-carrying cardholders have had debt for at least a year – According to a new poll from CreditCards.com, 56 percent of credit card holders who are carrying balances have been doing so for more than a year. ...
- Visa, Mastercard to raise swipe fees in April: reports – Visa and Mastercard are planning to raise swipe fees in April, according to media reports. It could result in higher prices for consumers. ...