Fifth Third (FITB.O) has agreed to acquire Comerica (CMA.N) in an all-stock deal valued at $10.9 billion. This merger represents the largest U.S. bank deal of the year and will establish the nation’s ninth-largest lender. Fifth Third is a diversified financial services company headquartered in Cincinnati, Ohio. Comerica, based in Dallas, Texas, is a regional bank with a focus on relationship banking and wealth management.
The acquisition comes as regional lenders seek to diversify their revenue streams, strengthen balance sheets, and expand into growing markets to compete with larger rivals. Comerica’s CEO, Curtis Farmer, noted that the current regulatory environment, seen as more conducive to mergers and acquisitions, influenced the timing of the deal. He also acknowledged the challenges faced during the 2023 regional bank crisis, given Comerica’s limited retail presence as a $78 billion bank.
Under the terms of the agreement, Comerica shareholders will receive 1.8663 Fifth Third shares for each Comerica share, valuing the deal at $82.88 per share based on Fifth Third’s October 3 closing price. Upon completion, Fifth Third shareholders will own approximately 73% of the combined company. The deal, which is subject to regulatory approvals and further due diligence, is expected to close by the end of the first quarter of 2026.
The merger will significantly expand Fifth Third’s presence, particularly in high-growth markets like Texas, California, and the Southeast. The combined entity, with $288 billion in assets, aims to leverage Fifth Third’s consumer banking strength to improve growth within Comerica’s existing footprint. Following the acquisition, three members from Comerica’s board will join Fifth Third’s board.
