Name: Khizra Saleem

CMS#401475
Program: BBA 8th
Assignment: IHRM
Submitted to: Mam Ayesha Sajid
 BB&T and Sun Trust merger
Introduction

The merger between BB&T and Sun Trust bank is being called a merger of equals. The merger
will create a combined entity which is likely to have a net worth of $66 billion. The combined
entity will hold over $400 billion in assets. It will also hold close to $330 billion in savings from
more than 10 million households in America. The combined entity will end up being the sixth
largest entity in the country. This banking merger is going to be the largest since the economic
crisis of 2009.The merger between the two companies is an all-stock deal. This comes as a
surprise because Trump’s recent tax breaks have freed up a lot of cash at the banks. SunTrust
bank currently has its headquarters located at Atlanta, Georgia whereas BB&T has its
headquarters located at Winston-Salem, North Carolina. It is rumored that the new combined
entity will be based out of Charlotte North Carolina which has a well-developed banking
infrastructure since it already houses Bank of America. The new name of these both companies
is Truist financial corporation.

Terms and conditions:

The term and condition which they both use is merger of equals this is because the fact of the
matter is that BB&T will end up having more control over the entity than Sun Trust. BB&T will
own 57% of the new entity and hence will exercise more control over it. This is strange because
of the fact that both Sun Trust and BB&T have equal assets in the ballpark of $210 billion.
However, at the present moment the shares of BB&T are selling at a premium in the market. This
is the reason behind the higher valuation received. This communication contains forward-
looking statements within the meaning of the Private Securities Litigation Reform Act of 1995
regarding the financial condition, results of operations, business plans and the future
performance of BB&T and SunTrust. Forward-looking statements are based on BB&T's and
SunTrust's current expectations and assumptions regarding BB&T's and SunTrust's businesses,
the economy and other future conditions. Because forward-looking statements relate to future
results and occurrences, they are subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict. In the merger the exchange ratio is the holders of
SunTrust common stock will receive 1.295 shares of BB&T common stock for each share of
SunTrust common stock they own. Holders of BB&T common stock will continue to own their
existing shares of BB&T common stock. Based on the closing price of BB&T’s common stock. the
exchange ratio represented approximately $62.85 in value for each share of SunTrust common
stock. Based on BB&T’s closing price of $48.97 the exchange ratio represented approximately
$63.42 in value for each share of SunTrust common stock. The strong culture alignment also involves
in terms and condition of their merger the combined company will preserve and maintain the strong
cultures of both BB&T and SunTrust to deliver superior client service and preserve the community
bank model to maintain close ties to shared local communities. With its stronger position it will
also deliver a collective set of training, leadership, and development programs to attract and
retain the industry's top talent across its expanded career opportunities.

The role of HR in their Merger

HR Plays a Substantial Role in their Merger. BB&T and Suntrust merger rely on the proper
allocation of human resources in different functional areas. Proper recruitment and selection
procedure them to allocate the right type of qualified employees in the proper job position for
ensuring workplace effectiveness. They are focus on informal recruitment and selection practice
in a workplace because Formal sources of recruitment like job advertisement in newspapers and
posters are less beneficial than the informal sources like walk-ins, internal job posting, external
job posting, employee referrals and rehiring previous employees because these sources deliver
correct and comprehensive information about candidate’s knowledge and competencies. They
also use sources like existing employee recommendations, educational institutes, head hunter
firms, self-web pages for communicating with prospective employees. They have established
special task forces to recruit workers from the merging banks. They are focus on communication
channel opens through constant communication with the employees in which employee
conveying their concerns to the management which is also beneficial for their productivity. BB&T
and Suntrust merger offered compensation to promote retention and to incentivise efforts to
consummate and achieve the anticipated benefits of the proposed merger. They are Boosting the
Morale of every level of Employees in the work place by giving them different trainings which is
according to their job tasks in which they enhancing the innovation and effectiveness if the
employee which is helpful in the effectiveness of their productivity. Hr is Complying with labour
laws of the workplace and also supervising personal records in the organization. Hr play a vital
role in leadership of their merger which prompted developing strategies to help them in
accomplishing the synergies they are looking for. HR leaders helps the management of their
merger to conform to a specific set of objectives thus they are driving away all misunderstandings
and differences that may come up in future.