BB&TReuters/Jim Young

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. 

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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. 

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“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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