Global Consumer Eyes BB&T Branches

Global Consumer Acquisition Corp. (GHC) announced yesterday that it intends to buy some or all of BB&T Corp.’s (BBT - Analyst Report) 21 branches in Nevada. Those branches were acquired by BB&T as part of its takeover of Colonial BancGroup last Friday. Global is in discussion with BB&T about its intention.

In July, Global reached an agreement with Colonial to buy the 21 branches, which have about $492 million in deposits and $440 million in loans. However, the deal had been invalidated by the takeover of Colonial by BB&T.

The Colonial deal is the biggest acquisition in BB&T’s history, creating the nation's eighth-largest financial holding company by deposits. Previously, BB&T had only three branches in Alabama. After the takeover, BB&T gained an additional 90 Colonial branches across the state and 204 branches in Florida, up from 107 offices previously.

BB&T has already started the integration process and expects merger and integration costs to total about $245 million. It anticipates about $170 million in annual pretax expense reductions.

The branches gained by BB&T in Nevada and Texas are outside its traditional business territory. Chances are that Global could get the branches in Nevada . However, BB&T has said that it would take time to decide about these branches.

According to Global, if it gets those branches, it would merge them with its Las Vegas arm, First Commerce Bank, and form a holding company, Western Liberty Bancorp.

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