SunTrust Banks (NYSE:STI) and BB&T Corp (NYSE:BBT) Thursday morning revealed plans for a $66 billion all-stock merger that would create the country’s sixth-largest bank. STI stock was up more than 5% in pre-market trading.
SunTrust said the marriage would create a $442 billion in assets company, with around $324 billion in deposits form a customer base of some 10 million U.S. households. In the all-stock deal SunTrust stock holders would get 1.295 shares of BB&T stock for each share of STI stock they own. The deal would also sweeten the dividend.
BB&T CEO Kelly King called the deal “a true merger of equals, combining the best of both companies to create the premier financial institution of the future.” “It’s an extraordinarily attractive financial proposition that provides the scale needed to compete and win in the rapidly evolving world of financial services,” the CEO said in a statement.
BB&T said the tie-up would likely add 13% in GAAP earnings accretion in 2021, with a 9% contribution from SunTrust. The deal is expected to close in the fourth quarter of 2019.