American lenders BB&T and SunTrust Banks have secured all necessary regulatory approvals for their proposed $66bn merger.
The companies received the green light from the Federal Reserve System and the Federal Deposit Insurance Corporation to combine their operations.
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State regulators North Carolina Commissioner of Banks and The Georgia Department of Banking and Finance have already approved the transaction.
The combination, first announced in February this year, will create the sixth largest commercial bank in the US.
Known as Truist Financial, the merged entity will tend to nearly 10 million consumer households.
As per the agreed terms, BB&T common shares will become Truist common shares; and all SunTrust common shareholders will be entitled to receive 1.295 Truist common shares for each share held.
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By GlobalDataWith all regulatory approvals in place, BB&T and SunTrust anticipate deal closure on 6 December 2019.
Recently, SunTrust Banks agreed to sell 30 branches to First Horizon Bank, in order to fulfil regulatory requirements related to the merger.
BB&T Chairman and CEO Kelly King said: “We are pleased to have received regulatory approval to merge two strong companies with complementary business models and a high level of cultural alignment.
“We’ll be even better together for our clients, teammates, communities and shareholders.”
King will serve as the chairman and CEO of the combined lender till 2021.
SunTrust chairman and CEO Bill Rogers will initially assume the responsibilities of president and COO of the merged entity and later serve as CEO following the resignation of King.
After the transaction closes, all BB&T or SunTrust infrastructure including branches and systems will be converted into the Truist brand. The process is estimated to take around two years, until which customers will be served through existing brands.
