July 7, 2015 / 9:05 PM / 5 years ago

UPDATE 1-Fed OKs BB&T's acquisition of Susquehanna Bancshares

July 7 (Reuters) - The Federal Reserve Board approved BB&T Corp’s $2.5 billion acquisition of Susquehanna Bancshares Inc, signaling a softening stance on finance M&A.

Merger activity in the banking sector has been muted since the financial crisis as regulators subjected acquirers to stricter scrutiny.

BB&T chief executive Kelly King told Reuters in November that the tone on bank mergers has been changing, so long as they would not result in reduced levels of capital or liquidity or place an undue burden on existing systems.

The deal is expected to be closed on August 1, BB&T said on Tuesday.

Susquehanna shareholders will receive 0.253 shares of BB&T and $4.05 in cash for each share held.

BB&T shares closed at $40.36 on the New York Stock Exchange on Tuesday, while Susquehanna shares closed at $14.22 on the Nasdaq. (Reporting by Timothy Ahmann in Washington and Krishna Chaithanya in Bengaluru; Editing by Andrea Ricci and Don Sebastian)

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