Fifth Third Bancorp to buy MB Financial for about $4.7 billion

[May 21, 2018]  (Reuters) - U.S. regional bank Fifth Third Bancorp <FITB.O> on Monday said it would buy MB Financial Inc <MBFI.O> in a stock-and-cash deal valued at about $4.7 billion.

 A branch location of Fifth Third Bank is shown in Boca Raton, Florida, January 21, 2010. REUTERS/Joe Skipper

Each MB Financial shareholder will receive $54.20, comprising 1.45 shares of Fifth Third common stock and $5.54 in cash, a 24 percent premium to MB Financial's last close.

Fifth Third Bank, which operates 1,300 branches and 2,600 ATMs throughout its 12-state geographic footprint, said the deal is expected to reduce it's regulatory common equity Tier 1 (CET1) ratio by about 45 basis points.

Citi served as financial adviser and Simpson Thacher & Bartlett LLP served as legal adviser to Fifth Third, while Sandler O’Neill + Partners served as financial adviser and Silver Freedman, Taff & Tiernan LLP and Vedder Price were legal counsel to MB Financial.

(Reporting by Nikhil Subba in Bengaluru; Editing by Shailesh Kuber)

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