Headquartered in Lititz, Pennsylvania, Susquehanna has 245 banking offices in Pennsylvania, Maryland, New Jersey, and West Virginia, with $18.6bn in assets, $13.6bn in deposits.
The acquisition is scheduled to significantly expand BB&T’s footprint in the Mid-Atlantic region, while improving its ranking to fifth in Maryland.
BB&T chairman and chief executive officer Kelly King said: "Similar to our recently announced market expansion acquisitions in the Dallas, Houston and Cincinnati markets, Susquehanna expands our franchise into a contiguous, attractive region that presents an exciting opportunity for us. The diversity of our markets is a key element of our long-term success."
Susquehanna chairman and chief executive officer William Reuter said: "BB&T’s expanded product offerings and resources combined with a stronger balance sheet will enable us to better serve our clients, associates and communities."
Under the terms of the agreement, Susquehanna shareholders would receive as merger consideration 0.253 shares of BB&T common stock and $4.05 in cash for each share of Susquehanna common stock.
The merger consideration is valued at $13.50 per share based on the average closing price of BB&T over the 45 trading days ending on 10 November.
In accordance with acquisition, BB&T intends to establish three new banking regions covering certain markets in Pennsylvania and New Jersey, and also integrate its Baltimore region with Susquehanna’s.
All four regions are expected to be led by legacy Susquehanna executives.
Current Susquehanna Board members William Reuter and Christine Sears would join BB&T’s Board of Directors, upon closure of the transaction, which is subject to customary closing conditions including regulatory approvals and approval of Susquehanna shareholders.
Image: BB&T has signed a definitive agreement to acquire Susquehanna Bancshares for $2.5bn. Photo: Barbthebuilder.
