Fifth Third to Acquire Comerica in $10.9B Deal, Forging a Top-10 U.S. Bank
The all-stock transaction aims to accelerate growth and expand market presence, signaling a new wave of consolidation in the regional banking sector.
Fifth Third Bancorp has announced a definitive agreement to acquire Comerica Incorporated in a $10.9 billion all-stock deal, a transformative move that will create the ninth-largest bank in the United States. The merger is poised to reshape the competitive landscape for regional banks, combining two Midwestern powerhouses to forge an institution with nearly $288 billion in total assets.
The transaction, , will see Comerica shareholders receive 1.8663 shares of Fifth Third stock for each Comerica share they own. This represents a significant premium and values Comerica at approximately $82.88 per share based on recent closing prices. Upon completion, Fifth Third shareholders will own about 73% of the combined entity, with Comerica shareholders holding the remaining 27%.
Leadership from both banks touted the strategic benefits of the combination. The deal is designed to accelerate Fifth Third's expansion into 17 of the 20 fastest-growing U.S. markets, particularly strengthening its presence in Texas and California while solidifying its Midwest base. "The acquisition is a strategic move to accelerate Fifth Third's long-term growth plan, enhancing its scale, profitability, and geographic reach," stated a joint press release. Fifth Third aims to leverage and its successful wealth management and commercial payments businesses to diversify revenue streams.
Wall Street has reacted largely positively to the announcement, viewing it as a logical step in a broader trend of industry consolidation. Piper Sandler analysts Scott Siefers and Frank Williams called the deal "basically, a game-changer," highlighting the enhanced scale and diversification it brings. The market responded swiftly, with following the news. The merger is seen as a sign of a more favorable regulatory environment for large-scale banking deals, potentially paving the way for further consolidation across the sector as institutions seek the scale necessary to compete with megabanks and fintech challengers.