BB & T said on Thursday it will buy SunTrust Banks for $ 28.2 billion in a corporation, creating the sixth largest US bank based on assets and deposits.
The companies called it a merger of equals, valued at $ 66 billion.
SunTrust shareholders will receive 1,295 shares of BB & T for each share they own. The stock value of $ 62.85 per share is a 7 percent premium to SunTrust's closing price Wednesday, according to a Reuters calculation.
BB & T shareholders own 57 percent of the total company and SunTrust will own the rest.
The combined bank will have headquarters in Charlotte, North Carolina, and will have around $ 442 billion in assets, $ 301
The agreement is expected to close in the fourth quarter of 2019.
BB & T was advised by RBC Capital, while its legal advice was Wachtell, Lipton, Rosen & Katz. Goldman Sachs and SunTrust Robinson Humphrey were financial advisors and Sullivan & Cromwell was legal adviser to SunTrust.