Fifth Third Bancorp to Acquire Comerica Bank in $10.9bn Deal

Fifth Third Bancorp announced its plan to acquire Comerica Bank in an all-stock transaction valued at $10.9 billion. This acquisition will significantly expand Fifth Third’s reach in high-growth markets, particularly in Texas, Arizona, and California, and make the combined entity the ninth-largest bank in the United States with a total asset base of around $288 billion. The deal will provide Comerica’s shareholders with 1.8663 Fifth Third shares for each Comerica share, translating to a price of $82.88 per Comerica share. This acquisition represents a strategic move to capitalize on the growing demand for financial services in the U.S. Sunbelt and other fast-developing markets.

Fifth Third’s CEO, Tim Spence, expressed that the deal aligns with the bank’s long-term strategy of achieving stronger operational efficiency and expanding its footprint in the U.S. While Fifth Third has traditionally had a strong presence in the Midwest, this acquisition enables the bank to deepen its reach into regions that are experiencing rapid population growth and economic development. As part of the deal, Fifth Third will inherit Comerica’s expansive network of retail banking branches, as well as its wealth management, commercial lending, and small business services, all of which will enhance the acquiring bank’s offerings and broaden its customer base.

The merger will enable Fifth Third to leverage Comerica’s strengths in commercial banking and treasury management, areas that are crucial for its future growth and competitiveness. Fifth Third aims to integrate Comerica’s operations smoothly while preserving its regional strength and customer relationships. Although the deal is expected to result in significant operational synergies, the integration process could be complex, especially as Fifth Third works to consolidate two large organizations with distinct cultures and customer bases.

The financial terms of the deal suggest that it will be accretive to Fifth Third’s earnings per share within the first year following the completion of the transaction. The bank has also highlighted that the acquisition will enhance its capital ratios, strengthening its balance sheet and enabling it to better serve customers in the expanded markets. However, the deal does come with certain challenges, including the potential risks of integration and the uncertain regulatory environment, especially with the increasing focus on anti-monopoly scrutiny in the banking sector.

Shareholders of both banks are expected to approve the deal in the coming months, with the merger anticipated to close by the end of the first quarter in 2026. Once completed, the merged entity will be well-positioned to capitalize on the continued growth in the U.S. financial sector and compete with other large national banks. The acquisition underscores the trend of consolidation in the U.S. banking industry, as regional players aim to build scale and expand their competitive edge in an increasingly dynamic market.