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US banks BB&T and SunTrust announce USD66 bn merger

AFP  |  Washington 

and announced Thursday they are to merge in a USD66 billion deal that will create the sixth largest in the

The companies said in a statement that both boards had approved the all-stock tie-up, which gives the new organisation USD442 billion in assets, USD301 billion in loans, and USD324 billion in deposits serving more than 10 million households in the

The deal is expected to close in the fourth quarter of 2019 subject to "customary regulatory approvals" as well as endorsement by the shareholders of each company.

The merger comes with Democrats newly in control of the powerful committee overseeing committee has warned that the days of lax oversight are over.

has sought to cut regulations in a variety of sectors. has eased scrutiny of smaller banks, but those with more than USD250 billion in assets still face stringent oversight.

Atlanta-based SunTrust, and of Winston-Salem, North Carolina, said the combined company -- to be based in Charlotte, -- will operate under a new name and brand, reflecting "the equal contribution both banks bring" to the venture.

"This is a true merger of equals, combining the best of both companies to create the of the future," Kelly said in the statement.

"It's an extraordinarily attractive financial proposition that provides the scale needed to compete and win in the rapidly evolving world of " said the companies shared a culture which "embraces the disruption of technology" and would be a strength of the new organization.

"With our geographic position, enhanced scale and leading financial profile, these two companies will achieve substantially more for clients, teammates, associates, communities, and shareholders than we could alone," he added.

of the Open Markets Institute, which follows monopoly issues, expressed concern however that the deal could further concentrate market power.

"Number of banks in the U.S. has fallen 40 per cent since 2000. Concentration concentration concentration!," he tweeted.

will have the same titles in the merged firm, while Rogers will become and chief operating officer.

will come equally from both firms, they said. Assets of the two banks are roughly equal at the moment. BB&T has more than 1,800 financial centers in 15 states and the capital, Washington, while SunTrust's branches focus on the "high-growth Southeast" and states.

In 2015 BB&T completed a USD2.5 billion takeover of regional Susquehanna.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, February 07 2019. 19:40 IST