MB Financial To Merge With Fifth Third Bancorp; Deal Valued At Approx. $4.7 Bln

(RTTNews) - Fifth Third Bancorp (FITB) and MB Financial, Inc. (MBFI) jointly announced a definitive merger agreement under which MB Financial will merge with Fifth Third Bancorp in a transaction valued at approximately $4.7 billion. Approximately 90 percent of the consideration will be in stock with the rest in cash. The common shareholders of MB Financial will receive $54.20 of total consideration, consisting of 1.45 shares of Fifth Third common stock and $5.54 in cash for each share of MB Financial common stock.

The transaction is expected to reduce Fifth Third's regulatory common equity Tier 1 (CET1) ratio by approximately 45 basis points. The pro forma tangible common equity to tangible assets (TCE) ratio of the combined entity is projected to be 8.2 percent at closing.