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Fifth Third Bancorp to Merge with MB Financial in $4.7B Deal
Two Midwest banks, Fifth Third Bancorp and MB Financial, Inc., plan to combine operations in a deal valued at roughly $4.7 billion. Chicago-based MB Financial will merge with Cincinnati-based Fifth Third Bancorp with 90% of the consideration in stock, and the balance in cash.
Based on the closing price of Fifth Third’s common shares on May 18, 2018, common shareholders of MB Financial will receive $54.20 of total consideration. The deal represents a 24% premium to MB Financial’s closing share price on May 18, 2018.
The merger will result in a total Chicago deposit market share of 6.5%, ranking the combined company fourth in total deposits and second in estimated retail deposits among the nearly 200 banks in the marketplace. The combined company will have a 20% share of middle market relationships in Chicago, ranking it second.
MB Financial has roughly $20 billion in assets, and has served the Chicago market for more than 100 years.
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- ◦Financing
