The Biggest U.S. Bank Deal In a Decade Was Just Announced

U.S. regional lender BB&T announced this week that it will be acquiring rival SunTrust, making it the biggest U.S. bank deal in ten years.

BB&T Corp will be buying SunTrust Banks Inc. for about $28 billion in stock, with the transaction expected to close later this year in the fourth quarter.

According to analysts, the merger will put pressure on other regional brands to consider their own deals and more acquisitions could be on the way.

“The BB&T/SunTrust merger will open more eyes on the potential for more sizeable bank M&A to occur,” said Jefferies analyst Ken Usdin.

The newly combined company will operate under a new name and have around $442 billion in assets. BB&T Chairman and CEO Kelly S. King will perform those same roles in the new bank until 2021. Then current SunTrust Chairman and CEO William H. Rogers Jr. will take over as CEO.

“This is a true merger of equals, combining the best of both companies,” King said.

Not everyone was pleased about the news. “This proposed merger between SunTrust and BB&T is a direct consequence of the deregulatory agenda that Trump and Congressional Republicans have advanced,” commented Maxine Waters, chairwoman of the House Financial Services Committee.

“The proposed merger raises many questions and deserves serious scrutiny from banking regulators, Congress and the public to determine its impact and whether it would create a public benefit for consumers,” added Waters.

“The business has been changing and will be changing,” SunTrust Chief Executive William Rogers said. “This gives us the opportunity to be absolutely the most competitive bank.”

Disclaimer: We have no position in SunTrust Banks, Inc. (NYSE: STI) nor BB&T Corporation (NYSE: BBT) and have not been compensated for this article.