The deal is shown to be cash and stock, and it would compare to a $29.3 billion market cap of BB&T.
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Investors and analysts alike will be marking their calendars when Penn National Gaming, Inc.is expected to report earnings on 2015-10-22.
Under the deal, which was approved by the board of directors of each company, merger consideration will be about $1.8 billion consisting of 70% BB&T common stock and 30% cash.
“The acquisition of National Penn provides a tremendous opportunity to strengthen our franchise in Pennsylvania and continue building the scale necessary to operate efficiently and with high quality service”, BB&T Chairman and CEO Kelly King said in a statement issued with the announcement. King said the bank will probably refrain from acquisitions for six months to a year in order to integrate the recently acquired firms. The transaction is viewed as strategically compelling and financially attractive – a strong fit with BB&T’s culture and community-banking model.
“I am very proud of the strong and consistent financial performance delivered by the team members of National Penn”, said National Penn President and CEO Scott V. Fainor in a release. “We are extremely excited to welcome our new clients and associates to BB&T”.
BB&T has had a big summer this year by closing a $2.5 billion deal to purchase of Susquehanna Bancshares Inc. and its purchase of Bank of Kentucky Financial Corp. “We believe partnering with a high-quality company such as BB&T will continue to benefit our shareholders, employees, customers and communities”.
A portion of the expense reductions will come from the branch closures but Brown also said there will be savings from back office personnel layoffs, though he offered no specific number.
Shares of Penn National Gaming (NASDAQ:PENN) traded up 0.48% during mid-day trading on Tuesday, reaching $18.70. National Penn’s Chief Banking Officer David B. Kennedy will be the regional president in Allentown, the companies said.
The stock is now trading up 17.03% at $12.75 as of 2:55 PM EDT. In November 2013, Penn National Gaming, Inc announced the completion of the tax-free spin-off to its shareholders of Gaming and Leisure Properties, Inc.
BB&T also plans to establish a fourth community banking region for eastern Pennsylvania.
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Fainor will be responsible for overseeing the three new geographic banking regions – Western Maryland and Pennsylvania, Central Pennsylvania and the Greater Delaware Valley – established during the Susquehanna deal as well as the Lehigh Valley region created in the National Penn deal, Maryland, Washington, D.C. and West Virginia. A new 11-story corporate headquarters opened in May 2014 on Hamilton Street in Allentown.
