BB&T to buy SunTrust in the largest bank merger deal in a decade

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BB&T to buy SunTrust in the largest bank merger deal in a decade

On Thursday, the 7th of February, 2019, the market had inhaled a more lenient regulatory atmosphere, which would likely to result in the biggest bank merger deal between BB&T and SunTrust, since the ages of great financial depression between 2007-2009, and more deals would likely to unveil far sooner-than-expected, multiple analysts had been quoted saying, given the turbulence in the world economy including an upcoming shrinkage and a piling up of corporate debts over the US financial nomenclature.

On Thursday (February the 7th), the US regional bank, BB&T said that they would be purchasing their arch-rival SunTrust Banks Inc., another prominent lender in US economy, in a $28 billion in stocks. Both of the lenders are expected to conclude the deal later this year, although a precise time-table had not been revealed, given the US administration’s crisis-era regulations, which had been restricting regional expansions and boosting criticism over the banking sector.

As multiple analysts told as a repercussion to the event that the merger might have put pressure on other regional banks as well, to consider their own deals, an analyst Ken Usdin wrote in a client note, “The BB&T/SunTrust merger will open more eyes on the potential for more sizeable bank M&A to occur.

Meanwhile, on the sidelines of the recent World Economic forum in Davos, the Chief Executive of Bank of America Corp., Brian Moynihan forecasted that this year could unleash a new wave of big bank mergers.