In a significant move within the banking industry, Fifth Third Bancorp has announced its acquisition of regional lender Comerica in a transaction valued at $10.9 billion. This all-stock deal is expected to position the merged entity as the 9th largest bank in the United States, boasting roughly $288 billion in assets, as stated by the companies today.
According to a report by FOX19, Comerica's shareholders will receive 1.8663 shares of Fifth Third for each share they currently hold, equating to $82.88 per share based on the closing stock price of Fifth Third on the preceding Friday. Reflecting the terms of the agreement, once the deal is finalized, it is anticipated that existing Fifth Third shareholders will control about 73% of the combined company, while Comerica shareholders will inherit the remaining 27%.
Tim Spence, Chairman, Chief Operating Officer, and President of Fifth Third Bank, described the merger as a "pivotal moment" for the company, as it seeks to expand its presence in rapidly growing markets and enhance its commercial expertise. "This combination marks a pivotal moment for Fifth Third as we accelerate our strategy to build density in high-growth markets and deepen our commercial capabilities," said Spence in a statement obtained by WKYC. Upon the deal's conclusion, the leadership team will include executives from both Fifth Third and Comerica, helping to ensure continuity for both staff and clients.
Curt Farmer, Chairman, President, and CEO of Comerica, highlighted the combined strengths that the merger will offer, stating, "Joining with Fifth Third – with its strengths in retail, payments and digital – allows us to build on our leading commercial franchise," as he told FOX19. Farmer is set to take on the role of Vice Chair after the acquisition, with the present Comerica's chief banking officer, Peter Sefzik, slated to head the Wealth & Asset Management business of Fifth Third.
As consolidation in the regional banking sector appears to be a continuing trend, this deal stands out for its scale and potential impact on the market. Still requiring approval from shareholders of both companies, the transaction is expected to close at the end of the first quarter of 2026.
