BB&T Corporation (NYSE:BBT) and SunTrust Banks (NYSE:STI) are on the verge of merging. BB&T and SunTrust announced that the Federal Deposit Insurance Corp and Federal Reserve had given regulatory approval for the deal.

Merger to form the sixth-largest commercial bank in the US

The two companies announced the $66 billion deal back in February 2019. With the merger, they will form a new entity called Truist Financial Corporation, which will be the sixth-largest commercial bank in the US. It will serve close to 10 million consumer households in the US as well as other business clients. Truist will have assets worth more than $425 billion.

The merger could be completed on December 6, 2019, subject to fulfillment of customary closing conditions. There are no further regulatory approvals needed, according to the companies. BB&T common stock will change to Truist Common stock while SunTrust common stockholders will get 1.295 Truist common shares for every Suntrust common share at closing. After closing the merger, Truist, common shares will trade under the symbol “TFC” on the NYSE.

However, it will take time for consumer to notice any difference. The joint release from the companies indicated that customers would continue receiving services via their respective SunTrust and BB&T branches, mobile apps, websites, relationship manager, and financial advisers pending integration. They expect to convert to the Truist brand within the next two years.

SunTrust to divest 30 branches to First Horizon

BB&T CEO, Kelly King, indicated that they were delighted to receive regulatory approval for the merger. He added that the two are strong companies having complementary business models as well as enhanced cultural alignment.

The regulators approved the deal on condition that the two banks will divest 30 branches as well as $2.4 billion in deposits. This aims at mitigating the competitive effects of the merger. The banks indicated that SunTrust would divest 30 branches to First Horizon Bank. First Horizon Bank will assume around $2.4 billion in deposits for a premium of 3.4%. It will also purchase approximately $410 million loans, with the deal likely to close at the beginning of 2020.