Through a deal valued at approximately $66 billion, Sun Trust and BB&T have agreed to merge into a new bank. The combined financial institution has yet to be named and will be headquartered in Charlotte, North Carolina. After the merger is complete, the newly-formed bank will be the sixth-largest in the United States based on assets and deposits.
Kelly S. King, CEO and Chairman of BB&T will take on the same roles for the newly-merged bank until 2021, at which point William H. Rogers, Jr., CEO and Chairman of Sun Trust will take over. Prior to 2012, Rogers will assume the roles of president and COO. The new bank’s board will be balanced with members from both banks’ pre-merger boards of directors.
Both banks describe the transaction as a merger of equals though BB&T’s shareholders will hold 57 percent of the new bank while Sun Trust’s shareholders will only hold 43 percent. BB&T currently operates more than 1,800 financial centers in 15 states and the District of Columbia. Sun Trust’s operations include corporate and business operations in addition to the bank’s extensive network of branches. The merger has compelled both banks to relocate from their hometowns of Atlanta, Georgia and Winston-Salem, North Carolina to the site of their new headquarters in Charlotte. However, both banks will maintain significant operations in their cities of origin. The merger is projected to be completed in Q4 of 2019 pending approval by regulators and shareholders.
Mergers and acquisitions are highly regulated; therefore, San Diego corporations may benefit from choosing an experienced California mergers & acquisitions attorney to provide legal representation. In addition to ensuring the corporate client understands each step in the potentially cumbersome process, a knowledgeable corporate lawyer might help clients make informed decisions during critical negotiations and ensure all required legal documentation is submitted in a timely, in the proper format, and to the correct party.