Comerica Shares Surge on $10.9 Billion Fifth Third Buyout
All-stock transaction represents a 20% premium for Comerica shareholders, fueling a pre-market rally.
Comerica Inc. (CMA) shares surged over 11% in pre-market trading after Fifth Third Bancorp (FITB) announced it would . The agreement brings together two major regional players, signaling a potential new wave of consolidation within the U.S. banking sector.
The terms of the deal will see Comerica shareholders receive 1.8663 shares of Fifth Third for each share of Comerica they own. This values Comerica at approximately $82.88 per share, a premium of about 20% to the stock's recent 10-day average price. Following the transaction's close, Fifth Third shareholders will own roughly 73% of the combined entity, with Comerica shareholders holding the remaining 27%.
Investor reaction was swift and positive for the target company, with CMA shares climbing approximately 11.5% before the opening bell. Conversely, shares of the acquirer, Fifth Third, fell around 3% in pre-market action, a common reaction for a company issuing stock for a large acquisition.
In a statement, Fifth Third CEO Tim Spence described the merger as a in high-growth markets and bolstering its commercial banking capabilities. The combined company is expected to become the ninth-largest U.S. bank, with total assets of approximately $288 billion.
Broader market sentiment suggests the deal could spark further M&A activity. The SPDR S&P Regional Banking ETF (KRE) ticked up 1% in early trading on the news, as investors speculate on which institutions could be next. The transaction, which is subject to regulatory approval and customary closing conditions, is anticipated to be finalized in the first quarter of 2026.