One of the big pieces of financial news this week came when BB&T announced that it would acquire SunTrust in an all-stock deal. The merger would create a completely new bank based in Charlotte.
The move is the biggest bank merger in a decade, and it allows both entities to shed about 10 percent of costs while creating the sixth-largest bank in the country, a financial institution that plans to take advantage of technology to better serve customers.
Both banks have ensured customers that they don’t have anything to worry about.
The combination “provides the scale needed to compete and win in the rapidly evolving world of financial services,” BB&T CEO Kelly King, who will keep that title at the new company, said in the banks’ joint statement Thursday.
In the few hours since the deal was announced, both banks have been calling their biggest clients and shareholders to make sure they understand that the deal is “positive for everybody,” King said on a conference call with analysts Thursday morning. The banks aren’t expecting attrition as they merge, but rather growth, King said.
The deal is the first large deal since financial insiders began predicting that we would see large-scale mergers in the wake of relaxed banking regulations and the recent changes to the U.S. tax codes.
The news brought BB&T’s stock price up by almost 3 percent, while SunTrust’s price rose by 8.7 percent, a sign that the news was welcome to investors.
The move appears to take SunTrust’s Atlanta headquarters away as the new company’s operations to North Carolina. It remains to be seen what the new name will be, but the question that looms on the minds of Braves fans everywhere is: what will happen to the naming rights for SunTrust Park?