BB&T and SunTrust are joining forces in a $66 billion deal that'll create the US's 6th largest bank

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BB&T and SunTrust are joining forces in a $66 billion deal that'll create the US's 6th largest bank

BB&T

Reuters/Jim Young

A woman walks by a BB&T bank branch in Washington.

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SunTrust Banks and BB&T have agreed to a $66 billion merger that will create the sixth-largest US bank.

The deal pays SunTrust shareholders 1.295 BB&T shares for each SunTrust share they own, according to a joint statement released Thursday morning. BB& T shareholders will own about 57% of the combined company.

The transaction will provide an estimated $1.6 billion of synergies by 2022, the press release said. The combined company will operate under a new name and will be headquartered in Charlotte, North Carolina, but maintain large operations in Winston-Salem, North Carolina and Atlanta, Georgia - the location of the two companies current headquarters.

"This is a true merger of equals, combining the best of both companies to create the premier financial institution of the future," said BB&T Chairman and Chief Executive Officer Kelly King. "It's an extraordinarily attractive financial proposition that provides the scale needed to compete and win in the rapidly evolving world of financial services.

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SunTrust shares were up 8.5% following the news and BB&T's were higher by 4.8%.

This story is developing...

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