MB Financial, holding company for MB Financial Bank, has received necessary stockholder approvals for its $4.7bn merger with Ohio based Fifth Third Bancorp.
However, the preferred stockholders of the company did not approve the Fifth Third- MB Financial merger with a two-third majority.
Accordingly, MB Financial will become a subsidiary of Fifth Third but all outstanding shares of the company’s preferred stock will continue to remain outstanding as preferred stock.
The transaction, announced in May this year, involves an exchange of each MB Financial share into 1.45 shares of Fifth Third common stock and $5.54 in cash.
The Fifth Third- MB Financial merger is yet to receive regulatory approvals and is expected to close in the first quarter of next year.
Once completed, the deal is expected to create the fourth largest bank in Chicago in terms of total deposits and second in estimated retail deposits.
During the announcement of the Fifth Third- MB Financial merger, Fifth Third Bancorp chairman and president Greg Carmichael said: “There were no other potential partners of the same calibre as MB Financial in the Chicago market, and we are very pleased to reach an agreement to merge our companies.
“We view MB Financial as a unique partner in our efforts to build scale in this strategically important market.
“Customers of both banks will benefit from greater convenience and the complementary capabilities that our banks, together, can offer.”
Serving in the Chicago market for more than 100 years, MB Financial has around $20bn in assets.