Shareholders vote to approve merger of BB&T and SunTrust
Deal is expected to close by the end of the year
WINSTON-SALEM, N.C. >> The proposed merger of equals of BB&T Corp. and SunTrust Banks Inc. has taken another step forward this week. Shareholders of both companies on Tuesday approved the agreement for the merger of the two companies. In addition, BB&T Corp. shareholders approved the name of the new entity — Truist Financial Corp.
In special meetings Tuesday, more than 98% of the BB&T shares voted were cast in favor of the merger of equals with SunTrust and more than 96% of the shares voted were cast in favor of the Truist name; while nearly 99% of the SunTrust shares voted were cast in favor of the proposal to approve the merger agreement with BB&T.
The vote is the latest step in the merger process — a process that began in February with the announcement that the two banking institutions planned a merger of equals. It is an all-stock deal valued at approximately $66 billion, and when completed will result in the sixth-largest U.S. bank holding company.
“This is an important milestone as we move toward our goal of creating a bold, transformative organization that benefits our shareholders, associates, clients and communities,” Kelly S. King, BB&T chairman and CEO, said in a press release.
“Our best path forward is to align with a partner that values a purpose-driven approach, sound risk management and leading technology. We found that in BB&T. Together, our combined scale will allow us to compete more effectively while enhancing our client experience and community support,” Bill Rogers, SunTrust chairman and CEO said in a release.
The merger is expected to close in the third or fourth quarter of 2019, and is subject to certain additional customary closing conditions, including receipt of the remaining regulatory approvals.
In June, the companies announced that the new company will take the name Truist Financial Corp. and the combined bank will be named Truist Bank.
On July 10, BB&T received approval for the merger from the North Carolina Office of the Commissioner of Banks.
Also in July, the companies outlined a plan to lend or invest $60 billion to low- and moderate-income borrowers and in low- and moderate-income communities. The Truist Bank Community Benefits Plan would make the investments over a three year period — from 2020 to 2022.
“Both BB&T and SunTrust have long legacies of serving the community, but together as Truist, we will be uniquely positioned to invest in ways we never could on our own,” King said in announcing the plan in mid-July.
Once the merger is complete, King will serve as the chairman and CEO of the combined company. Rogers will be president and CEO of the combined company until he succeeds King as CEO in September 2021.
The new combined company will serve more than 10 million households across the Mid-Atlantic and southeastern states. Assets of the combined company are estimated at $441 billion, including $324 billion in deposits and $301 billion in loans.
According to the merger website, Truist.com, transaction details for the all-stock merger call for shareholders to receive 1.295 BB&T shares for each SunTrust share. Share ownership would then be 57% BB&T, 43% SunTrust.
In addition to the new name and brand, the combined company’s board of directors and executive management team will be evenly split between the two institutions. A new corporate headquarters will be established in Charlotte, N.C.
Among the strategic and financial benefits of the proposed merger, according to the company, are: cultural alignment; increased profitability and scale to drive new innovations; revenue growth through complementary businesses and cost synergies.
For more information about the merger and the combined companies visit Truist.com.
Based in Winston-Salem, N.C., BB&T operates more than 1,800 financial centers in 15 states and Washington, D.C.
BB&T expanded its footprint in the Greater Philadelphia region in 2015 and
2016, with the acquisitions of Susquehanna Bancshares Inc. in August 2015 for $2.5 billion and National Penn Bancshares in April 2016 for
$1.8 billion. BB&T’s acquisition of National Penn Bancshares resulted in BB&T becoming the fourth largest bank in Pennsylvania. For more information about BB&T, visit www.bbt.com.
Headquartered in Atlanta, Ga., SunTrust Banks Inc. operates throughout the Southeast and Mid-Atlantic states. For more information about SunTrust visit www.suntrust.com.
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