# BB&T Buys SunTrust: Meet the Newest U.S. Megabank

By: [Team Stash](/content/learn/author/team-stash/index.html)

Published: Feb 12, 2019

• Updated: Aug 22, 2024

Two U.S. banks are joining forces. What does it mean for you?

#### In this article:

1. [**Here’s what you need to know:**](/content/learn/bbt-buys-suntrust/#heres-what-you-need-to-know/index.html)
2. [**Banking on the future**](/content/learn/bbt-buys-suntrust/#banking-on-the-future/index.html)

BB&T and SunTrust—two of the largest banks in the South and the eastern U.S.— [are merging](https://bbt.mediaroom.com/2019-02-07-BB-T-and-SunTrust-to-Combine-in-Merger-of-Equals-to-Create-the-Premier-Financial-Institution). The two banks, which have a combined $441 billion in assets, 10 million customers, and $324 billion in deposits, will join together to become the sixth-largest bank in the U.S.

## Here’s what you need to know:

- BB&T is purchasing SunTrust for $28.2 billion in an all stock deal. The deal is [expected to close](https://www.cnbc.com/2019/02/07/bbt-and-suntrust-to-combine-in-an-all-stock-merger-of-66-billion.html) during the fourth quarter of 2019.

- The deal is the largest bank merger since 2004 when JPMorgan bought Bank One Corp., [according to the Wall Street Journal](https://www.wsj.com/articles/suntrust-bb-t-to-combine-in-all-stock-merger-11549537817).

- SunTrust shareholders will receive 1.295 BB&T shares for each of their shares.

- The new bank will be valued at $66 billion and [does not yet have a name](https://thepremierfinancialinstitution.com/).

## Banking on the future

Most Americans use one of [the “big four” banks](https://www.visualcapitalist.com/the-banking-oligopoly-in-one-chart/)—JPMorgan Chase, Bank of America, Wells Fargo, and Citibank—which each have more than $1 trillion in assets. Since both BB&T and SunTrust have a combined 10 million customers, the effects for retail banking customers may be minimal.

The deal will, however, likely raise [concerns about consolidation](https://www.bloomberg.com/opinion/articles/2019-02-07/bb-t-suntrust-merger-may-start-wave-of-bank-consolidation) in the financial industry, and may come under scrutiny from regulators.

But while the new institution will be the sixth-largest in the U.S., it [will only rank](https://www.axios.com/bbt-suntrust-banking-merger-91e1f370-bb82-45f0-903e-b48fec027b51.html) as the 65th largest worldwide, according to [industry data](https://platform.mi.spglobal.com/web/client?auth=inherit#news/article?id=44027195&cdid=A-44027195-11060). The new bank will be better equipped to compete with the “big four” banks, which are considerably larger than any others in the U.S.

You can invest in the [financial industry](/content/investments/etfs/index.html) on Stash.