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As it prepares to digest its biggest bank meal, Fifth Third Bancorp hopes to grow its financial powerhouse in Michigan and Chicagoland.
Cincinnati-based Fifth Third said Nov. 20 it would acquire Old Kent Financial Corp., based in Grand Rapids, Mich., for $4.9 billion in stock.
Exuding confidence that was largely affirmed by analysts, Fifth Third CEO George A. Schaefer Jr. said the deal would add to company revenue in year one.
"No other opportunity in the Midwest provides us with the kind of large markets we like with plenty of future potential for growth," Schaefer said in a conference call with analysts and reporters.
The deal, expected to close in the second quarter next year, would
expand Fifth Third from $44 billion in assets to $69 billion.
The combined company would hold $43.8 billion in deposits at more
than 900 branches, mostly in Ohio, Kentucky, Indiana, Michigan and
Illinois. Based on deposits, Fifth Third will become the second-largest
banking...