BB&T and SunTrust has announced Thursday that they will merge in a $66 billion partnership deal that will position them as the sixth largest bank in the United States.
Both companies said in a statement that the deal has been approved by both company boards, which gives the new organization $442 billion in assets, $301 billion in loans, and $324 billion in deposits serving more than 10 million households in the United States.
This partnership is expected to be sealed by the fourth quarter of 2019, though subject to both ‘customary regulatory approvals and shareholders of both companies approvals.’
Trump’s administration has tried to cut regulations in different sectors. While Congress has eased scrutiny of small banks, those with more than $250 billion in assets still face hard times.
When BB&T and SunTrust finally merge, the new bank will bear a new name and it will be located in Charlotte, North Carolina, its activities will reflect the equal contributions both companies brought together.
“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 chief executive officer Kelly King said in the statement. It’s an extraordinarily attractive financial proposition that provides the scale needed to compete and win in the rapidly evolving world of financial services.”
SunTrust CEO and chairman William H. Rogers said the companies shared a culture which “embraces the disruption of technology and would be a strength of the new organization. With our geographic position, enhanced scale and leading financial profile, these two companies will achieve substantially more for clients, teammates, associates, communities, and shareholders than we could alone.”
“Number of banks in the U.S. has fallen 40% since 2000. Concentration concentration concentration!,” Matt Stoller of the Open Markets Institute tweeted.
At the moment, assets of the two banks are roughly equal. BB&T has more than 1,800 financial centers in 15 states and the capital, Washington, while SunTrust’s branches concentrates more on the “high-growth Southeast” and Mid-Atlantic states.