US lender BB&T has received the go-ahead from the Federal Reserve, FDIC and other state regulators to acquire Pennsylvania-based lender Susquehanna Bancshares in a cash and stock deal worth about $2.5bn.
The takeover deal, announced in November 2014, is projected to help BB&T expand its footprint in the mid-Atlantic region. Susquehanna operates over 240 branches in Pennsylvania, New Jersey, Maryland and West Virginia through subsidiary Susquehanna Bank.
Susquehanna had $18.7bn in assets and $13.8bn in deposits as of 31 March 2015, which will be added to BB&T’s portfolio post acquisition.
The transaction is scheduled to close on 1 August 2015, with bank systems expected to be converted in the fourth quarter.
BB&T chairman and CEO Kelly King said: "We are very pleased to receive this approval and excited to move forward with the merger. Susquehanna is a strategically compelling deal expanding our franchise into a contiguous, attractive region that presents tremendous opportunities. The diversity of our markets is a key element of our long-term success."
Meanwhile, BB&T is planning to set up three new geographic banking regions, namely Western Maryland and Pennsylvania, Central Pennsylvania and the Greater Delaware Valley regions.
BB&T and Susquehanna Bank are also set to integrate their existing regions in Maryland to create a new Maryland Region.