May 21, 2018 / 10:39 AM / 7 months ago

BRIEF-Fifth Third Bancorp To Merge With MB Financial in $4.7 Bln Deal

May 21 (Reuters) - Fifth Third Bancorp:

* FIFTH THIRD BANCORP TO MERGE WITH MB FINANCIAL, INC. CREATING A LEADING RETAIL AND COMMERCIAL FRANCHISE IN THE ATTRACTIVE CHICAGO MARKET

* FIFTH THIRD BANCORP - DEAL FOR VALUED AT APPROXIMATELY $4.7 BILLION

* FIFTH THIRD BANCORP - APPROXIMATELY 90 PERCENT OF CONSIDERATION WILL BE IN STOCK WITH REST IN CASH

* FIFTH THIRD BANCORP - COMMON SHAREHOLDERS OF MB FINANCIAL WILL RECEIVE $54.20 OF TOTAL CONSIDERATION

* FIFTH THIRD BANCORP - 2 MEMBERS OF MB FINANCIAL’S BOARD OF DIRECTORS ARE EXPECTED TO JOIN FIFTH THIRD BANCORP BOARD

* FIFTH THIRD BANCORP - TRANSACTION EXPECTED TO REDUCE FIFTH THIRD’S REGULATORY COMMON EQUITY TIER 1 (CET1) RATIO BY APPROXIMATELY 45 BASIS POINTS

* FIFTH THIRD BANCORP - TOTAL CONSIDERATION CONSISTS OF 1.45 SHARES OF FIFTH THIRD STOCK AND $5.54 IN CASH FOR EACH SHARE OF MB FINANCIAL

* FIFTH THIRD BANCORP - TRANSACTION IS EXPECTED TO REDUCE FIFTH THIRD’S REGULATORY COMMON EQUITY TIER 1 (CET1) RATIO BY APPROXIMATELY 45 BASIS POINTS

* FIFTH THIRD BANCORP - EXPECT DEAL TO BE ACCRETIVE TO OPERATING EPS IN FIRST YEAR, WITH ACCRETION OF NEARLY 7 PERCENT IN SECOND YEAR

* FIFTH THIRD BANCORP - INTENDS TO COMPLETE 2017 CCAR BUYBACK PLAN BY REPURCHASING UP TO $235 MILLION SHARES BEFORE BEGINNING PROXY SOLICITATION FOR DEAL

* FIFTH THIRD BANCORP - EXPECT INVESTMENT TO GENERATE AN IRR OF APPROXIMATELY 18.5 PERCENT

* FIFTH THIRD BANCORP - EXPECT DEAL TO ACCELERATE PROGRESS TOWARDS NORTHSTAR FINANCIAL TARGETS & ALSO RAISE THEM ABOVE PREVIOUS GUIDANCE Source text for Eikon: Further company coverage:

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