For a company that had repeatedly said it wasn’t all that interested in whole bank M&A, BB&T (BBT) shifted direction in the biggest way possible, announcing on Thursday that it had reached an agreement with SunTrust (STI) to combine in a true merger of equals that will create the sixth-largest bank in the U.S. and a major force in the Southeast.
There
are heightened execution risks to this deal, but I basically like it.
Cost savings should exceed initial targets, and the combined company
will not only see significant synergy in areas like commercial banking
and fee-generating operations (like insurance and investment banking),
but also be better-able to compete with far larger banks like Bank of America (BAC), Wells Fargo (WFC), and JPMorgan (JPM) when it comes to investing in the technology and digital services that seem likely to drive the next wave of banking.
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BB&T Shifts Gears In A Huge Way, Announcing A Value-Creating Mega-Merger With SunTrust
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