May 22, 2018

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.

Read more at Fifth Third

Get CRE News in 150 words

For comments, questions or concerns, please contact Dennis Kaiser

Tags: Financing