August 18, 2015 / 12:45 AM / in 3 years

BB&T to buy National Penn Bancshares for about $1.8 billion

(Reuters) - BB&T Corp (BBT.N) said it would buy National Penn Bancshares Inc NPBC.O in a cash-and-stock deal for about $1.8 billion to expand in the U.S. Mid-Atlantic region.

The deal would consist of 70 percent BB&T shares and 30 percent in cash. National Penn shareholders can opt to receive 0.3206 of a BB&T share or $13 in cash for each National Penn share.

BB&T said it expects the deal to add to earnings per share in the first full year, excluding one-time charges.

The company also said it expects to incur pre-tax merger and integration costs of about $100 million and expects annual costs savings of about $65 million.

Acquisition of National Penn would boost BB&T’s franchise in Pennsylvania, the company said.

National Penn’s chief executive officer will be named group executive, the company said.

National Penn, headquartered in Allentown, Pennsylvania, has $9.6 billion in assets, $6.7 billion in deposits and 124 banking offices in Pennsylvania, New Jersey and Maryland.

The deal needs approval from regulators and National Penn shareholders. BB&T expects the deal to close in mid-2016.

Deutsche Bank Securities served as financial adviser to BB&T and Sandler O’Neill & Partners, L.P was the financial adviser to National Penn. O’Melveny & Myers LLP served as legal counsel to BB&T and Wachtell, Lipton, Rosen & Katz to National Penn.

Reporting by Rama Venkat Raman in Bengaluru; Editing by Lisa Shumaker

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