U.S. banking giant Wachovia Corp. agreed to acquire SouthTrust Corp. in a stock transaction valued at about US$14.3 billion, with an acquisition that will boost Wachovia’s presence in the southeast and accelerate its planned expansion into the Texas market.

In a news release issued today, the bank holding companies said Wachovia will exchange 0.89 shares of its common stock for every SouthTrust common share, in a deal expected to add to Wachovia’s cash earnings per share within 24 months and to operating earnings per share within 30 months.

Operating earnings exclude merger-related and restructuring expenses and preferred dividends, while cash earnings exclude these items and amortization of intangibles.

Based on Wachovia’s closing price Friday of US$47, the deal values SouthTrust at US$41.83 a share, a 20% premium to its Friday close of US$34.80.

“This transaction gives us clear leadership in a number of attractive, high-growth states, and extends our reach into new southeastern and southwestern states,” said Wachovia chairman and CEO Ken Thompson in the release.

The deal comes on the heels of other big bank acquisitions in recent months. Bank of America Corp. and J.P. Morgan Chase & Co. have announced large-scale acquisitions in a massive bid for the nation’s checking, credit-card and mortgage customers.