American lender BB&T has acquired Susquehanna Bancshares in a cash and stock transaction worth nearly $2.5bn to expand its footprint in the Mid-Atlantic region.
Under the deal, Susquehanna’s shareholders will receive 0.253 shares of BB&T common stock as merger consideration and $4.05 in cash for each share of Susquehanna common stock, with the merger consideration worth $13.50 per share.
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Following closure of the transaction, William Reuter and Christine Sears, existing board members of Susquehanna, will join BB&T’s board of directors.
The lender expects to incur pre-tax merger and integration costs worth nearly $250m and estimates cost savings of about $160m per year.
BB&T is planning to set up three new banking regions across certain markets in Pennsylvania and New Jersey, and integrate its Baltimore region with Susquehanna’s.
It is also planning to create a $10m economic development fund to offer ongoing support of the Lancaster, Pennsylvania community.
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By GlobalDataThe deal has received go-ahead from the boards of both the companies.
William Reuter, chairman and CEO of Susquehanna, said, "BB&T’s expanded product offerings and resources combined with a stronger balance sheet will enable us to better serve our clients, associates and communities."
